Youssef Al Bustanji (Abu Dhabi)
Total financial transfers in the UAE increased by 35%, equivalent to an increase of 4.45 trillion dirhams, to reach 17.2 trillion dirhams in 2023, compared to 12.7 trillion dirhams in 2022, according to Central Bank data issued today.
The data showed that financial transfers between banks operating in the UAE increased by 3.22 trillion dirhams in 2023, recording a growth of 41.3% to reach 11.018 trillion dirhams, compared to 7.797 trillion dirhams in 2022.
Financial transfers to consumers and bank customers from companies and individuals also increased by 1.23 trillion dirhams, a growth of 25%, to reach 6.14 trillion dirhams in 2023, compared to 4.91 trillion dirhams in 2022.
The data showed that the total value of checks cleared in the country increased by about 38 billion dirhams, recording a growth of 3.1% during the year 2023 to reach 1.263 trillion dirhams, compared to 1.225 trillion dirhams in 2022.
These indicators revealed that the UAE national economy recorded growth levels in 2023 that are the highest in several years, in the total activity witnessed by the country’s business sectors, and also reflect the high levels of cash liquidity circulating in the local market, as a result of the influx of foreign direct investments, the rise in the population and the growth Investments in alternative sectors, an increase in the number of employees, and an improvement in the solvency of individual and corporate bank clients, and their ability to meet their financial obligations on time.
On the other hand, the reserves of banks operating in the UAE at the Central Bank increased by 130.6 billion dirhams to reach 522 billion dirhams by the end of December 2023, recording a growth of 33.4% compared to their balance of 391.6 billion dirhams by the end of December 2022.
The increase in the balance of reserves of banks operating in the country, with the Central Bank, came as a result of the large increase in the balance of mandatory reserves, which rose by 83.2% over the past year to reach 182.5 billion dirhams at the end of December 2023 compared to 99.6 billion dirhams at the end of December 2022, and the increase in this item comes as a result of the increase. In the percentage of banks’ reserve requirements for demand deposits from 7% to 11%, according to the instructions of the Central Bank of the Emirates, as of April 2023.
The banks’ surplus reserves also increased as a result of the increase in liquidity in the local market, and the growth of economic activity by 16.4%, equivalent to an increase of 48 billion dirhams, to reach approximately 340 billion dirhams by the end of 2023, compared to 292 billion dirhams by the end of 2022.
According to the data, the balance of cash bills and certificates of deposit issued by the Central Bank, in which banks invest excess liquidity available to them, increased by 29.7% to reach 213.6 billion dirhams at the end of December 2023, compared to 164.7 billion dirhams at the end of December 2022.
As for the current account balance, it remained approximately stable at 126 billion dirhams at the end of 2023, compared to its balance of 127 billion dirhams at the end of 2022.
The total value of investments of banks operating in the UAE increased by 107 billion dirhams, equivalent to a growth of 20.3%, to reach 634.4 billion dirhams, during 2023, compared to 527.4 billion dirhams at the end of December 2022.
The data shows that banks increased their investments again at a high rate in the stock sector, as the balance of their investments in this item increased by 33.9% during the year 2023, reaching 15.8 billion dirhams at the end of December 2023 compared to 11.8 billion dirhams at the end of December 2022. What is noteworthy is that Most of this increase in the balance of banks’ investments in stocks was achieved in December 2023, as banks increased their investments in this month by 3.5 billion dirhams, or the equivalent of an increase of 28.5% compared to their balance in the previous month of November.
The data confirmed that banks’ investments in bonds and securities that represent debts owed to “third parties” remained the basis of total bank investments, as the balance of banks’ investments in bonds held until maturity increased by 45.9% to reach 304.8 billion dirhams, and the balance of securities held until maturity increased by 45.9% to reach 304.8 billion dirhams. It represents debts owed to “third parties” by 2.5%, reaching 264.9 billion dirhams by the end of December 2023.
2024-03-06 13:05:41
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