MENA Newswire News Desk: The UAE’s banking sector achieved an 11.1% growth in net international reserves during the first seven months of 2024, reaching AED1.273 trillion by the end of July, an increase of AED127.5 billion from AED1.145 trillion recorded at the end of 2023. This growth reflects the stability and strength of the UAE’s financial sector amid global economic fluctuations.
The Central Bank of the UAE contributed significantly to this increase, with its own net reserves totaling AED771.6 billion as of the end of July, a 14.6% rise from AED673.42 billion at the end of 2023. Meanwhile, other banks operating within the UAE also saw a boost in net international reserves, reaching AED501.6 billion, a 6.22% increase from AED472.2 billion at the close of last year.
Gold reserves held by the Central Bank showed robust growth as well. As of July, these reserves reached AED21.28 billion, a 23.5% increase from AED17.226 billion in July 2023. Over the first seven months of 2024 alone, the gold reserves climbed by 17.3%, rising from AED18.147 billion at the end of 2023. Gold is included among the Central Bank’s diversified assets, which also encompass liquid funds, certificates of deposit, and securities held to maturity.
In addition, banking operations data from the Central Bank of the UAE highlighted increased activity in the UAE Financial Transfer System (UAEFTS), a primary platform for interbank and customer fund transfers. Transfers through UAEFTS exceeded AED11.13 trillion during the first seven months of 2024, a 17% year-on-year increase from AED9.5 trillion over the same period in 2023. Of this total, AED7.03 trillion were interbank transfers, while AED4.1 trillion involved customer-to-customer transactions.
Monthly remittance figures in 2024 were also disclosed, with transactions peaking at AED1.81 trillion in July. The UAEFTS, developed by the Central Bank since 2001, facilitates real-time fund transfers across banks and financial institutions.
The banking sector also processed substantial cheque transactions, with image-clearing technology enabling the clearance of AED765.08 billion across more than 13 million cheques in the first seven months of the year. Monthly figures showed that cheque clearances ranged from AED92.9 billion in April to AED122.7 billion in May, demonstrating the ongoing utility of cheque payments alongside digital transactions.
Cash operations also recorded significant figures, as cash deposits at the Central Bank totaled AED111.4 billion, while cash withdrawals reached AED120.3 billion during the January to July period. These statistics underline the critical role of the Central Bank’s cash facilities in supporting liquidity across the UAE banking sector.