UAE banking deposits surge to $43bn in 11 months
DUBAI, January 5, 2019
The aggregate balance of 3-6 month banking deposits amounted to Dh157.8 billion ($42.9 billion) during the first eleven months of 2018, up 8.4 per cent from the end of 2017, according the Central Bank of UAE figures.
Driven by a hike in interest rates that boosted demand for term deposits, the 3-6 month deposits steadily grew since the commencement of 2018, with the third quarter of 2018 seeing the total balance rising to Dh180.7 billion before declining to Dh150 billion in September.
By October 2018, the 3-6 month deposits rebounded again to Dh160.4 billion before stabilising again by the end of November at Dh157.8 billion, stated the report.
The 3-6 month deposits account for 16.5 percent of the aggregate balance of term deposits at the UAE banks, which stood at Dh956 billion, according to CBUAE figures.
It's noteworthy that the interest rates charged by the Emirates Inter-Bank Offered Rate (Eibor) hit new highs across all terms by the end of 2018, with the six-month rate up 54.4 per cent and 12-month term leaping 39 per cent, it stated.
The interest hike is attributed to the US Federal Reserve's decisions that raised interest rates more than four times throughout 2018, it added.-TradeArabia News Service
