UAE banks may need liquidity injection - Emirates Business 24|7

UAE money supply sharply slowed down in the first four months of 2010, raising the prospect of fresh liquidity injection by the Central Bank, analysts said.

Many banks are offering high interest rates of up to seven per cent on deposits to attract funds after negative growth in some months this year, but such offers have so far failed to reverse that trend, they said.

The situation has been complicated by a steep fall in government deposits with the country's 23 national banks and 28 foreign units and a sharp slowdown in the deposits of private establishments, says official data.