UAE central bank says speculators have left local banking market

15 September 2008
The Central Bank of the UAE says that 90 per cent of the “hot money” that entered the domestic banking system to speculate on a revaluation of the dirham has now left the country.

Following the bank’s second board meeting of the year on 14 September it said it would continue to monitor the situation, and said that in the event of a return of currency speculators “the central bank has the necessary tools to deal with the situation”.

Figures from the bank indicate that as much as $20bn had been held in the emirates alone, in the expectation of a revaluation of the dirham’s dollar peg. The total figure, including investments that do not go through the central bank, could have been much higher.

A MEED Subscription...

Subscribe or upgrade your current MEED.com package to support your strategic planning with the MENA region’s best source of business information. Proceed to our online shop below to find out more about the features in each package.