No liquidity problems for UAE banks - cenbank chief

Cenbank governor also expects lower economic growth and inflation rates in 2010.
No liquidity problems for UAE banks - cenbank chief
By Gavin Davids
Thu 07 Jan 2010 12:20 AM

Banks in the UAE enjoy high liquidity and are not in any need of additional support, said the Governor of the UAE Central Bank today. Infact, they do not face any liquidity problems at all, he added.  

Speaking at the sidelines of the opening of the new headquarters of the Sharjah Islamic Bank (SIB), Sultan bin Nasser al Suwaidi said that the stabilisation of the global economic and financial crisis reflected positively on the UAE.

He added that he felt that the economic growth in the UAE would not be enormous in the coming period and that inflation rates would be very low.

Al Suwaidi also said that he thought that property prices have declined to a point where they have started to become attractive to investors.

He reiterated that the UAE would continue to be pegged to the US dollar, and would not be participating in any attempts to develop a unified Gulf currency.

He said: “We are pegged to the dollar, so we will be pegged to the interest rate too.”

The UAE had pulled out of the project to develop a single Gulf currency in May after its request to be the host of the common central bank was rejected by the other member states in favour of the Saudi Arabian capital, Riyadh.

The new headquarters of the Sharjah Islamic Bank is an effort to make the bank more integrated and to develop its services to its customers.

Mohammed Abdullah, CEO of Sharjah Islamic Bank, said that the financial solvency of the bank equals 27 percent of its capital.

He asserted that the liquidity and safety of the banks portfolio are sound and that profits for 2009 are good.

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