The value of transfers carried out in the banking sector in the country, through the UAE Financial Transfers System (UAEFTS), increased to more than 9.2 trillion dirhams during the first nine months of this year, while government deposits in banks witnessed a significant increase during the same period, with a value of 109 ml
Government deposits to the highest level since 2018
9.2 trillion dirhams of financial transfers through UAE banks within 9 months
Total government deposits in banks amounted to 402.5 billion dirhams at the end of last September.
Ahmed Youssef: “The UAE has overcome the effects of the Corona pandemic, and this is accompanied by a strong movement of money through official channels, especially banks.”
The value of transfers carried out in the banking sector in the country, through the UAE Financial Transfers System (UAEFTS), increased to more than 9.2 trillion dirhams during the first nine months of this year, while government deposits in banks witnessed a significant increase during the same period, with a value of 109 billion dirhams, recording the highest level It has within a period of three quarters of a year, since 2018, according to data issued yesterday by the Central Bank.
In detail, the total government deposits in banks, at the end of last September, amounted to 402.5 billion dirhams, compared to 293.6 billion dirhams, at the end of December last year, an increase of 108.9 billion dirhams, equivalent to a growth of 37%.
Remittances in the banking sector, through the Emirates System for Remittances of the Central Bank, which include bank transfers between them, as well as customers, recorded 9.2 trillion dirhams during the first nine months of this year, compared to 7 trillion dirhams during the same period last year. with an annual growth rate of 31.4%.
Banking expert, Ahmed Youssef, told Emirates Today, “The increase in government deposits is a direct reflection of the increase in financial surpluses, which are usually kept in banks, especially national banks, in addition to the increase in interest rates on deposits, which amounted to more than 4%.” percent on million deposits, which is an attractive factor for government deposits, since the return on them is guaranteed and remunerative compared to other types of investment,” stressing that “these deposits can be withdrawn at any time, if needed.”
And Youssef indicated that «on the other hand, government deposits constitute an essential support for banks and their levels of liquidity, so they always reflect the strong economic situation of the state, the high financial solvency of banks, and contribute to increasing the injection of funds in various sectors».
And he continued, “The rise in remittances also in the banking sector indicates the momentum of the economic movement, the rise in financing and dealing with checks and others,” pointing out that “the UAE has surpassed the effects of the Corona pandemic, and is witnessing strong growth rates, infrastructure projects and large expansions in various sectors, and this is undoubtedly accompanied by it.” Strong movement of funds through official channels, especially banks.
Youssef added: “The UAE is distinguished by the fact that all money movement takes place under the umbrella of the Central Bank and its remittance system, whether in banks or money changers, thanks to the strong controls that protect the country’s economy, in light of its prominent role as a global financial center, as these controls and the tight system It prevents any attempts to launder money, or the entry of illegal funds, so we find an upward pace in the value of financial transfers that pass through the official financial system of the state.
Central Bank statistics indicated that the value of clearing checks circulated using their copies amounted to 913.8 billion dirhams, for 16.3 million checks, during the first nine months of this year, while the value of cash deposits in the Central Bank during the same period amounted to 148.3 billion dirhams, while the value of withdrawals reached Cash from the Central Bank amounted to about 151.6 billion dirhams, during the first three quarters of 2022.