In a significant development, the Central Bank of the UAE (CBUAE) has reported a remarkable increase in its foreign assets, marking a historic milestone in the nation’s financial landscape. According to recently released statistics, the total foreign assets of the CBUAE surpassed AED 700 billion by the end of February 2024, reflecting an impressive rise of AED 203 billion over the past year.
This surge represents a monthly increase of 2 percent, with foreign assets rising from AED 695.04 billion in January 2024 to AED 708 billion in February 2024, amounting to an increment of AED 13 billion within a month.
The annual growth of the CBUAE’s foreign assets stands at a remarkable 40.2 percent, compared to AED 505.1 billion recorded in February 2023, indicating an increase of approximately AED 202.9 billion over the span of 12 months. Moreover, since the beginning of the current year, there has been a 4 percent increase, amounting to AED 27 billion, compared to approximately AED 681.15 billion at the end of 2023.
Driving this surge are the increased current account balances and deposits with overseas banks, which have witnessed a significant annual increase of 51 percent, reaching AED 467.56 billion by February 2024, compared to around AED 309.9 billion in February 2023.
Foreign investments within the CBUAE’s foreign assets have also experienced substantial growth, reaching approximately AED 189.37 billion in February 2024, marking a year-on-year increase of about 28.9 percent from AED 146.9 billion in February 2023.
Additionally, other foreign assets of the Central Bank amounted to AED 51.12 billion by February 2024, reflecting an annual growth of approximately 5.8 percent compared to around AED 48.31 billion in February 2023.
It’s worth noting that the reported foreign assets exclude CBUAE’s Reserve Tranche Position (RTP) and SDR Holdings with the IMF, emphasizing the scale of the Central Bank’s financial standing.
The surge in foreign assets underscores the Central Bank’s pivotal role in bolstering the UAE’s financial stability and further cements its position as a key player in the global economic landscape.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
30th April, 2024
