By Staff writer
Certificates of deposit dropped to $53bn by the end of May, from $54bn in April
The Central Bank of the United Arab Emirates injected around AED15.86 billion ($4.3bn) in cash to the financial system in June.
The move was designed to boost liquidity and compensate banks for the considerable amount of funds withdrawn out of excess liquidity in the market in April and June, according to the apex bank's figures.
Figures revealed the certificates of deposit dropped to AED194.33bn by the end of May, from AED198.77bn in April.
The CBUAE last month introduced an Overnight Deposit Facility (ODF), allowing conventional banks operating in the country to deposit surplus liquidity at CBUAE on an overnight basis.
"The introduction of the ODF is the first step towards implementation of the new Dirham Monetary Framework announced earlier this year," the country's financial regulator said in a statement in July.
The new deposit facility is aimed to be the prime facility for managing surplus liquidity in the UAE banking sector prior to the launch of the Monetary Bills Programme and replaces issuance of one-week Certificate of Deposits.