1.3% rise for the next period last year.Truth Consultancy
«Central»: AED 194 billion cash withdrawals in 9 months
Source: Abu Dhabi – Mohammed Abdel-Hay
Date: October 23, 2016
The latest statistics of the UAE Central Bank confirmed the increased cash withdrawals, both paper and metal from the bank during the last nine months of this year to 194.26 billion dirhams, compared with 191.70 billion dirhams for the same period last year, an increase of 2.56 billion dirhams and 1.3%.
Also it revealed statistics on the growth of cash deposits, both paper and metal at the central bank during the first nine months of this year, rising to 21.17 billion dirhams, a growth rate of 12%.
The withdrawals amounted to the end of September, 21.58 billion dirhams achieving the highest increase during the months of the third quarter of this year, reaching 18.33 billion dirhams at the end of July, an increase of 3.25 billion dirhams and by 17.7% to AED.
And achieved draws its highest level this year at the end of last June, reaching 25.91 billion dirhams and then fell to 18.33 billion dirhams at the end of July and returned to rise again in August and September to conclude the third quarter at a level of 21.58 billion dirhams.
Economists for «economic statement» confirmed yesterday that an increase in cash withdrawals and deposits at the central bank is a strong indicator of the stability and robustness of the banking system in the state, in addition to the availability of liquidity in the markets, and the continued government spending on development projects.
According to Dr. Nasser, founder and president of the company Nasser Saidi and Associates, and a member of the Regional Consultative Group IMF’s Middle East and North Africa Fund, that the withdrawals and cash deposits growth during the first nine months of this year, evidence of the strength of the banking system in general, particularly UAE Central Bank under the difficult conditions that prevailed in the Gulf region due to the drop in oil prices and its repercussions since mid-July 2014.
He pointed out that the increase in cash deposits with the central bank clearly indicate the entry of foreign investments and funds into the banking sector.
Dr. Nasser explained that despite the positive growth in the withdrawals, but the precise observer of the banking sector and economic confirmed the existence of a slowdown in liquidity growth in the banking sector compared to the periods that saw a rise in oil prices prior to July 2014, and is clear that the UAE government is seeking for some time to adjust the fiscal policy and the search for new sources of income.
Reda Mosallam economist partner in Truth Corporation for Economic Consultancy in Abu Dhabi The cash withdrawals growth at the Central Bank confirms the increasing availability of liquidity in the market as well as the government continues to pump liquidity into the markets and spending on projects to meet the economic development of the state requirements, as statistics reveal that the government not only increase their deposits with the bank, but also play a large withdrawals to spend on development projects.
He said that the increase in deposits for the nine months of this year due to the increase in bank deposits, adding that the banks now prefer to increase Deposit central to the pending availability of appropriate opportunities to exploit the value of Aadaatha in local markets.
Draw satisfaction Muslims that deposits growth with the central bank by 12% evidence of fiscal surpluses in the bank and the banks together, stressing that banks seeking to increase Deposit at the central bank because of the good benefits ratios as well as the central bank is still the safe haven for deposits of the government and the banks.