DUBAI: The Central Bank of the United Arab Emirates has launched a financial support package to strengthen the country’s banking sector amid global uncertainty.
The move 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 UAE Central Bank.
The central bank said the UAE’s financial system remains strong and current global challenges do not have a major impact.
The UAE has foreign exchange reserves of more than AED 1 trillion (around $270 billion), demonstrating strong financial support. Banks also have high liquidity, with around AED 920 billion ($250 billion) in the central bank, including more than AED 400 billion ($109 billion in reserves).
The package will give banks easier access to cash, relax some rules and allow them to use additional capital to continue lending. It also provides flexibility to help clients facing financial pressures.
“CBUAE’s precautionary policies and proactive frameworks have consistently proven effective,” Sheikh Mansour said.
The central bank added that it is willing to take further measures if necessary to protect the economy and the financial system.
