UAE Banking Sector Sees 5.8% Increase in Net International Reserves – Central Bank Data

Youssef Al Bustanji (Abu Dhabi)

Net international reserves of the UAE banking sector increased by 5.8% in the first two months of this year to reach 1.215 trillion dirhams ($331 billion) at the end of February 2024, compared to 1.147 trillion dirhams ($312 billion ) at the end of this period. December 2023, according to statistical data published yesterday by the Central Bank of the Emirates.
The UAE Central Bank’s net international reserves increased by 5% within two months and reached 707.3 billion dirhams ($192.5 billion) at the end of February 2024, compared to 673.4 billion dirhams ($183.3 billion) at the end of than December 2023.
According to the Central Bank Law, the bank’s net international reserves by the end of February 2024 exceed the minimum required reserves by more than 225 billion dirhams ($61 billion ).
The net international reserves of banks operating in the country increased by 7.2%, equivalent to an increase of 34.2 billion dirhams, to reach 507.6 billion dirhams ($138.2 billion) at the end of February 2024, compared to 473.4 billion dirhams ($128.9 billion) at the end of December 2023.
The UAE Central Bank holds most of its international reserves in US dollars, with a dirham peg to the dollar.
It should be noted that the increase in the Central Bank’s net international reserves is a reflection of the increase in the surplus in the balance of payments (the total account of the state), which gives a -into the current account, the capital account, and the financial account. , including the foreign trade balance and the total trade of goods and services with foreign markets.
The increase in the Central Bank’s net international reserves reflects an improvement in the competitiveness of the national economy in its relations with foreign markets, including an improvement in national exports, an increase in the attractiveness of the local market to foreign tourists, an increase in the flow of foreign direct investments to the state, and an increase in financial movements entering the local market of the country. The international reserves of the Central Bank were distributed among 467.6 billion dirhams in current accounts, balances and deposits with the Central Bank with foreign banks, and 189.4 billion dirhams in foreign deposits, as well as 14.65 billion dirhams in special drawing rights with the International Monetary Fund. , and 51 billion dirhams in other unclassified assets.
There are 62 banks operating in the UAE, including 23 national banks with 489 branches, 21 payment offices, and 46 electronic banking services units, as well as 39 foreign banks, including 28 licensed banks. use all banking activities in the country, and 11 commercial or wholesale banks, with 72 branches one payment office, and 21 units of electronic banking services at the end of February 2024.
About 38,173 employees work in the banking sector (62 banks), including 30,863 employees in national banks and 7,310 employees in foreign banks.