UAE Central bank confirms outflow of 90pc of foreign, speculative money

The Board of Directors of Central Bank discussed on Sunday the current position of liquidity at banks, and in the country in general, and confirmed that almost 90pc of foreign, speculative hot money has already flowed out of the country.

At this year's second meeting presided over by HE Khalil Mohammed Sharif Foulathi, Chairman of the Board of Directors, the Board also instructed the continuation of monitoring the situation closely.

The Board was 'assured that the Central Bank has the necessary tools to deal with the situation if so required', said a statement from the Central bank.

The Board also reviewed applications submitted by banks operating in the UAE to expand their businesses and open new branches, and reviewed applications from natural and juridical persons to found companies and establishments to undertake financial activities and money changing business. The Board approved the applications, which fulfil the terms as per the law and regulations, as applied to each business activity.

The Board also discussed memoranda relating to organizational matters at the Central Bank and took appropriate decisions.

The meeting was attended by HE Dr Omar Mohammed Ahmed Bin Sulaiman, Deputy Chairman, HE Sultan Bin Nasser Al Suwaidi, the Governor, Younis Haji Khoori, Mubarak Rashid Al Mansouri, Hilal Khalfan Bin Dhahir Al Muhairi, Khalid Mohammed Salem Balama, Board Members, and Mohamed Ali Bin Zayed Al Falasi Deputy Governor.