UAE – Mubasher: The Central Bank of the UAE (CBUAE) expected that the coronavirus (COVID-19) pandemic will have a negative impact on global trade and supply chain movements, associated with travel restrictions.
Therefore, the effect of COVID-19 on trade and supply chain will lead to high volatility in capital markets and commodity prices, according to the CBUAE annual report 2019.
The report referred that although COVID-19 will negatively affect global and local economies, the scale of its economic consequences cannot be determined at the current moment.
During a meeting held on Monday, 4 May, the board of the central bank requested the banks operating in the UAE to continue supporting customers affected by COVID-19.
Commenting on the pandemic's economic effect in 2020, the CBUAE governor, Abdul Hamid Mohammed Saeed, said: "The outlook for 2020 is uncertain, marked by the global impact of the COVID-19 pandemic, both in terms of human lives, health and the economic activity. The strength and resilience of the banking sector will be tested."
Saeed added: "The CBUAE shall continue to play its role in terms of guiding the banking sector through this period, with active intervention and support in various facets ranging from liquidity, capital adequacy, and other policy measures."
