Youssef Al Bustanji (Abu Dhabi)
The net international reserves of the UAE banking sector (banks and the central bank) jumped by 27.3% during the first ten months of 2022, increasing by a new value of 170 billion dirhams, to exceed 791 billion dirhams (215.4 billion US dollars) by the end of October 2022, compared to 621 billion dirhams (169 billion dollars). American) at the end of 2021, according to data issued by the UAE Central Bank.
The reserve level of the UAE banking sector in foreign currencies, which exceeds $215 billion, is the highest level in the history of the sector, and confirms the durability of the UAE banking sector, its strength and financial solvency, and its ability to meet the demand for lending and financing in the local market, on the one hand, and to cover all the obligations of banks and the state towards partners. outsiders, on the other hand.
The data showed that net international reserves increased by more than 11 billion dirhams during the month of October, compared to their balance in the preceding September, when they amounted to 780 billion dirhams.
The UAE Central Bank acquires 426 billion dirhams of the net international reserves of the UAE banking sector (equivalent to 116 billion US dollars). This level of reserves exceeds the mandatory minimum required for the international reserves of the Central Bank by about 98 billion dirhams, by the end of October 2022.
The indicators of the international reserves of the central bank and banks confirm the strength of the UAE national economy, and its high levels of competitiveness in the commercial and financial relationship with foreign markets. It also shows the strength of the attractiveness of the local market for capital and direct and indirect foreign investment flows. It gains the trust of depositors and investors.
The UAE banking sector maintains the majority of its international reserves in US dollars, or in bonds and securities denominated in US dollars, due to the peg between the dirham and the dollar. Increased attractiveness of bank deposits to investors, companies and bank customers in general.
The UAE banking sector is considered the largest in the Middle East and North Africa, with total assets exceeding 3.615 trillion dirhams, and it consists of 22 local banks and 38 foreign banks, as it is at the end of October 2022.
