Reserves rose as much as 23.1% or $21 billion
UAE banks’ net international reserves hit a record high of $110 billion (AED404bn) by the end of November, up 23.1% from $89bn (AED328bn) during the same month last year, according to the Central Bank of the UAE (CBUAE).
The $21bn (AED76bn) growth in net international reserves is reflected the country’s financial and economic status, which was affirmed by global credit rating agencies that classify the UAE as one of the key international hubs in the region.
The increase was mainly driven by a rise in net international reserves held by UAE-based banks, hitting $16.3bn (AED60bn) by the end of November, compared to $4.6bn (AED16.8bn) in December 2017.
The CBUAE's net reserves rose to $94bn (AED344bn) by the end of November, up $5.2bn (AED19bn) compared to October of the same year.
Since the UAE dirham is pegged to the US dollar, the CBUAE maintains a minimum foreign reserve requirement to ensure its full coverage. It holds globally-recognised reserves of at least 70% of the US dollar in circulation and demand deposits.