Thursday 19 March 2009

Permanent repo may be a solution

Economists and bankers have suggested the establishment of a permanent repo system by the UAE Central Bank in order to ensure healthy liquidity.

"Short-term funds cannot serve the purpose as they bring in unhealthy liquidity, which cannot be relied on for the long term," said Shayne Nelson, Standard Chartered bank's Mena Chief Executive.

He said things are improving for the UAE and Dubai, and the several government liquidity-boosting initiatives have started bearing fruit.

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