Biggest U.A.E. Bank Says Dollar Supply Tightening Amid Oil Drop - Bloomberg Business

Biggest U.A.E. Bank Says Dollar Supply Tightening Amid Oil Drop - Bloomberg Business:

"National Bank of Abu Dhabi PJSC, the United Arab Emirates’ largest bank, said there’s a reduced supply of dollars in the country as the region grapples with the impact of oil trading around $30 per barrel and credit downgrades.
“There is a dollar shortage,” Chief Executive Officer Alex Thursby told reporters in Abu Dhabi on Wednesday. “It’s not a crisis, but it is tightening,” he said. Government deposits in the U.A.E. slumped by more than $13 billion in a year after the drop in crude prices, the executive said on an earnings conference call in October.
Banks in the U.A.E., holder of the world’s sixth-largest oil reserves, are facing deteriorating conditions as lower crude leads to a decline in government spending, slower economic growth and falling asset quality, according to Standard & Poor’s. The U.A.E.s’ banking sector has lost 56 billion dirhams ($15.25 billion) in government deposits since September 2014, of which NBAD’s share was 48 billion dirhams, Thursby said in October."



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