DUBAI: The UAE Central Bank has launched a financial support package to strengthen the country’s banking sector amid global uncertainty.
The decision was approved at a board meeting chaired by Sheikh Mansour bin Zayed Al Nahyan, Vice President, Deputy Prime Minister, President of the Presidential Court and Chairman of the Board of Directors of the Central Bank of the UAE.
The central bank said the UAE’s financial system remained strong and current global challenges were not having a major impact.
The UAE holds foreign exchange reserves of over AED1 trillion (approximately $270 billion), demonstrating strong financial support. Banks also have high liquidity, with around AED920 billion ($250 billion) held at the central bank, including more than AED400 billion ($109 billion) in reserves.
The plan will give banks easier access to liquidity, relax some rules and allow them to use additional capital to continue lending. This also provides flexibility to support customers facing financial pressures.
“The CBUAE’s precautionary policies and proactive frameworks have consistently demonstrated their effectiveness,” Sheikh Mansour said.
The central bank added that it was ready to take further measures if necessary to protect the economy and the financial system.
