UAE resumes purchasing US Treasuries

30 Nov 2011

(MENAFN) UAE’s central bank governor, Sultan Nasser Al Suweidi, said that the bank recommenced investing in US Treasuries since the circumstances changed and interest rates were now reasonable, reported Emirates 24/7.

Al Suweidi added that the country would keep its currency, the dirham, pegged to the US currency, with the exchange rate of the dirham linked to the US dollar, adding that the peg to the US currency served the UAE’s economy.

On the other hand, the central bank said in July that it didn’t hold any US Treasury bonds and that most of its foreign reserves were invested in non-US assets.

It is worth noting that in June, UAE’s central bank’s foreign currency assets dropped to USD54.2 billion, however, holdings of foreign securities went up to USD23 billion in the moth, recording the highest level in at least four years.

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