By: Mahmoud Gamal
Abu Dhabi – Mubasher: Banks in the UAE have increased their investments in treasury bonds (T-bills) by 2.7% or AED 5.1 billion ($1.39 billion) in the first eight months of 2017.
By the end of September, banks’ investments reached AED 191.2 billion ($52.04 billion) versus AED 186.1 billion ($50.66 billion) by the end of December 2016, according to the Central Bank of the UAE (CBUAE).
National banks’ investments in treasury bonds grew 2.8% or AED 4.7 billion in the first eight months of 2017 to reach AED 171.6 billion by the end of September, according to the CBUAE’s data.
Meanwhile, foreign banks’ investments in treasury bonds rose 2% or AED 400 million by the end of the eight-month period, bringing the total value to AED 19.6 billion by the end of September, the central bank added.
Global developments, especially the constant political threats between the US and North Korea, have led central banks to save haven investments including treasury bonds, said capital market analyst Mohamed Al-Dhafiri.
The increase witnessed in the UAE’s investments in treasury bonds reflects its constant endeavours to diversify its investment portfolio to put up with the global economy’s slowdown, Al-Dhafiri added.
Month-on-month, banks’ investments in treasury bonds increased by 1.17% in August from AED 189.3 billion in July, while their investments in shares was unchanged at AED 12.1 billion, according to the CBUAE’s data.
The Emirati central bank further revealed that banks’ investment in the held-to-maturity securities increased by 4.4% to AED 63.3 billion against AED 60.64 billion by the end of 2016.
Translated by: Muhammad Abdulwakeel
