According to official data by the UAE central bank, government deposits held in country's banks fell 13% in the first two months of 2010 to their lowest level since late 2008, Reuters has reported. The drop is seen by analysts as an indication that policymakers are more comfortable with liquidity in the system. "We have been seeing that net government deposits in the banking sector has been coming down since the second quarter of last year across the GCC," Monica Malik, chief economist at EFG-Hermes in Dubai said.