UAE Central Bank's Foreign Assets Hit Record High With AED 203 Billion Yearly Increase

The Central Bank of the UAE (CBUAE) has achieved a significant milestone by surpassing the AED700 billion mark in total foreign assets at the end of February 2024, marking a historic first. This represents a substantial increase of AED203 billion over the past year, according to the latest statistics released by the bank. The figures show a monthly increase of 2 percent from AED 695.04 billion in January 2024 to AED708 billion at the end of February 2024, an uplift of AED13 billion.

On an annual basis, the foreign assets of the Central Bank have seen a remarkable growth of 40.2 percent compared to AED505.1 billion in February 2023, with an increase of approximately AED202.9 billion over 12 months. Since the beginning of the current year, there has been an approximate increase of 4 percent or AED27 billion, compared to around AED681.15 billion at the end of 2023.

The surge in foreign asset volume is attributed to the rise in current account balances and deposits with banks abroad, which saw an annual increase of 51 percent to AED467.56 billion at the end of last February, compared to around AED 309.9 billion in February 2023. Foreign investments within the Central Bank's foreign assets stood at approximately AED189.37 billion at the end of last February, marking a year-on-year increase of about 28.9 percent from AED146.9 billion in February 2023, which is equivalent to an increase of AED42.5 billion.

Additionally, other foreign assets reached AED51.12 billion at the end of last February, growing by approximately 5.8 percent annually compared to about AED48.31 billion in February 2023, with an increase equivalent to AED2.8 billion.

It is important to note that the Central Bank's reported foreign assets do not include CBUAE's Reserve Tranche Position (RTP) & SDR Holdings with the IMF. This distinction underscores the specific components that contribute to the overall figure of foreign assets as reported by the Central Bank.

This financial growth reflects not only the robustness of the UAE's banking sector but also its increasing role in international finance. The substantial increase in foreign assets underscores the country's solid economic position and its ability to maintain a strong presence on the global stage.

With inputs from WAM