UAE Central Bank says growth reflects the robust solvency position of the UAE banking sector
Total reserves at the Central Bank of the UAE increased to AED283.4 billion ($77.1 billion) by the end of November, a growth of 4.3 percent from AED271.6 billion during the same month of 2017.
The growth reflects the robust solvency position of the UAE banking sector and its compliance with international standards, including Basel III, state news agency WAM reported.
According to CBUAE figures, reserves have been growing steadily since the beginning of 2018, hitting a total of AED267 billion in the first half of the year before snowballing to AED283.4 billion by the end of November.
WAM reported that the certificates of deposits held by UAE banks, valued at AED125.8 billion by the end of November, account for 44 percent of aggregate reserves, while reserve requirements comprised 42.9 percent, or AED121.8 billion and current accounts of banks stood at 13.1 percent, or AED35.8 billion.
Last month, WAM reported that UAE banks’ net international reserves hit a record high of AED404 billion by the end of November, up 23.1 percent.
The AED76 billion 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, WAM said.