The UAE’s Banking Sector Sees Significant Increase in Net International Reserves
In a remarkable development, the UAE’s banking sector witnessed a substantial surge in its net international reserves, soaring by 11.1 percent, equivalent to 127.5 billion dirhams ($34.3 billion), in the first seven months of 2024.
By the end of July, the total reserves reached 1.273 trillion dirhams, a notable increase from 1.145 trillion dirhams recorded at the end of 2023.
Central Bank’s Reserves and Gold Holdings Show Impressive Growth
As per the Central Bank of the UAE’s June statistical bulletin, the central bank’s share of reserves stood at 771.6 billion dirhams by July’s end, marking a 14.6 percent rise from the previous year. Additionally, the net international reserves of banks operating in the UAE rose to 501.6 billion dirhams, reflecting a 6.22 percent increase.
Notably, the central bank’s gold reserves saw a significant uptick, growing by 23.5 percent year-on-year to 21.28 billion dirhams by the end of July.
Increasing Value of Banking Operations and Remittances
The value of transfers processed through the UAE Financial Transfer System exceeded 11.13 trillion dirhams during the first seven months of 2024, showcasing a substantial 17 percent year-on-year growth.
Monthly remittance values varied throughout the year, with significant amounts transferred each month, reaching a peak of 1.81 trillion dirhams in July.
Key Insights from Central Bank’s Data
According to the central bank’s data, the value of cheques cleared through image technology totaled 765.08 billion dirhams across more than 13 million cheques in the first seven months of 2024.
Furthermore, cash deposits at the central bank amounted to 111.4 billion dirhams, while cash withdrawals totaled 120.3 billion dirhams during the same period, indicating a vibrant banking landscape in the UAE.