Al-Suwaidi Says No Need for New Liquidity to Banks

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United Arab Emirates Central Bank Governor Sultan bin Nasser al-Suwaidi said there was no immediate reason for the government to provide further liquidity to banks.

“When there is a need, then of course we will consider, but there is no need for the time being,” al-Suwaidi told reporters in the capital, Abu Dhabi. “The liquidity is good.”

Banks in the U.A.E. faced a shortage of funds after the global credit crunch blocked their access to foreign money and as investors betting on a currency revaluation withdrew cash from the emirate. The government offered liquidity facilities, lowered the repurchase rate and is discussing a proposal to guarantee bonds issued by local lenders.