UAE’s 2011 economic growth 4%

27 Jun 2011

(MENAFN) UAE’s Central Bank Governor, Sultan Nasser Al Suwaidi, said that as a result of expanding tourism and trading sectors in the country, UAE’s 2011 economy would be expected to increase by up to 4 percent, reported Emirates 24/7.

AL Suwaidi added that in order to manage foreign reserves, the UAE used dollar based instruments that included deposits and not low yielding US Treasuries since their rate was very low and when one had to sell, he should sell at a large discount.

On the other hand, deputy executive director at the central bank’s treasury department, Mohamed Al Tamimi, said that about USD33 billion of the bank’s foreign reserves were held in US dollars with no euros on its balance sheet.

It is worth noting that the UAE has owned other instruments rather than the US Treasuries, mainly in dollars given its peg to the US currency, although central banks around the globe have held US Treasuries for their liquidity and safe haven status.

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