UAE banks face no liquidity problems: central bank governor 2010-01-07 05:40:32   Print

    ABU DHABI, Jan. 6 (Xinhua) -- The banks in the United Arab Emirates (UAE) do not have any liquidity problems, but enjoy high liquidity and are not in need of additional support, Central Bank governor Sultan Bin Nasser Al Suwaidi said Wednesday.

    In remarks made on the sidelines of an opening ceremony of the Sharjah Islamic Bank's new headquarters, Al Suwaidi also said the global economic crisis has stabilized to some extent, which reflected positively on the UAE, according to the official news agency WAM.

    "The economic growth in the UAE will not be enormous in the coming period and we will not have to talk about inflation as its rate will be very low," he added.

    Al Suwaidi also noted that property prices in the country have declined to "the point of becoming attractive for investment."

    He reiterated that the UAE dirham will continue to be pegged to the U.S. dollar, saying there would be no participation in a unified Gulf currency.

    On Nov. 29, the Central Bank issued a notice to the UAE's banks and branches of foreign banks operating in the country, making available to them a special additional liquidity facility linked to their current accounts at the Central Bank.

    The offer came just four days after the government of Dubai, a member of the oil-rich federation UAE, announced that it would ask the state-owned conglomerate Dubai World's creditors to agree to a debt moratorium of at least six months as a first step towards restructuring. 

Editor: Mu Xuequan
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