Khaberni - The Central Bank of the United Arab Emirates announced the approval of a comprehensive package to enhance the financial institutions' ability to withstand, aimed at supporting the stability of the banking sector in the country in light of regional developments.
The bank explained that "the total volume of liquidity held by banks at the central bank, in addition to its net eligible assets within the central bank's conventional operations, amounted to approximately 920 billion dirhams ($250 billion)".
The package stipulates "enhancing access to reserve balances up to 30% of mandatory reserve requirements, and providing future liquidity facilities in dirham and US dollar", a step aimed at enhancing financial stability and ensuring the continuity of banking operations amid regional and international challenges.
This measure comes at a time when the region is experiencing unprecedented military escalation on the backdrop of the ongoing war between Iran and the American-Israeli coalition, which entered its third week, with ongoing exchange of missile strikes and drones that have affected several Gulf countries, prompting monetary authorities in the region to take precautionary measures to protect their economies.
