31.75 billion dirhams of loans injected by banks into the arteries of the economy during the Coronavirus – the economic – the local market

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Banks operating in the country pumped loans amounting to 31.75 billion dirhams into the national economy during the first three months of the new Corona pandemic (Covid 19) (March – June 2020).

Several reports and statistics issued by the UAE Central Bank yesterday revealed that total domestic credit rose to one trillion and 626.8 billion dirhams by the end of last June, compared to one trillion and 595.1 billion dirhams by the end of last March, an increase of 31.75 billion dirhams, with a growth rate of about 2%.

Increase targeted funding

The bank’s bulletin of banking and monetary statistics indicated that the real estate, contracting, transportation, shipping, trade and agriculture sectors witnessed significant increases in the funds directed to them during the second quarter of the current year, as the total funds for the real estate and construction sector increased from 319.8 billion dirhams at the end of March to 326.5 billion dirhams at the end of June, with an increase of the amount. 6.7 billion dirhams, a growth rate of 2.1%.

The financing of the transport and freight sector increased from 63.2 billion dirhams to 83.9 billion dirhams at the end of June, an increase of 20.8 billion dirhams, by 33%, and trade financing from 155.7 billion dirhams to 157.2 billion dirhams, an increase of 1.5 billion dirhams and by 1%. Agriculture, to reach 1.8 billion dirhams compared to 1.5 billion dirhams last March, an increase of 278 million dirhams, and a growth rate of 18%.

Statistics revealed that personal loans declined to 329.5 billion dirhams at the end of June compared to 333.4 billion dirhams at the end of May, and credit directed to non-residents decreased to 164.7 billion dirhams at the end of June compared to 173.2 billion dirhams at the end of May, a decrease of 9.1 billion dirhams..

High liquidity

Statistics confirmed the increase in total liquidity in the national economy to an unprecedented level at the end of June, reaching one trillion and 752 billion dirhams, compared to one trillion and 714 billion dirhams by the end of March, with an increase of 38.2 billion dirhams and a growth rate of 2.2%, and the statistics confirmed the rise of the monetary base of the UAE to 408.2 billion Dirhams by the end of June, compared to 407.1 billion dirhams by the end of May.

The central bank’s budget also increased to reach 444.2 billion dirhams at the end of June compared to 443.3 billion dirhams at the end of May, and the international reserves of the central bank and banks amounted to 459.1 billion dirhams at the end of June compared to 439.8 billion dirhams at the end of June 2019.

The foreign assets of the Central Bank by the end of June reached 350.7 billion dirhams, compared to 353 billion dirhams at the end of May, and the current accounts and balances of the central bank abroad increased from 314.9 billion dirhams at the end of May to 315.8 billion dirhams at the end of June, while the certificates kept to maturity fell to 14.3 billion dirhams. By the end of June, compared to 19.2 billion dirhams at the end of May.

While the Central Bank’s other foreign assets increased to 20.2 billion dirhams by the end of June compared to 18.9 billion dirhams at the end of May, and capital and reserves at the central bank increased to 73.3 billion dirhams, compared to 71 billion dirhams at the end of May, which reflects the strong financial position of the Central Bank.

Statistics confirmed an unprecedented increase in the balance of the Central Bank of gold bullion, reaching 6 billion and 580 million dirhams at the end of June, compared to 1 billion and 247 million dirhams for the month of June 2019, with an increase of 5.3 billion dirhams and a growth rate of 427%, and the central bank intensified during the year 2019 and the first half of the year. The year 2020 increased its golden balance, and the balance reached about 4 billion dirhams at the end of December 2019, and it rose to 6.4 billion dirhams at the end of last May..

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