DUBAI: Shares of UAE-listed banks jumped on Wednesday after the Central Bank of the UAE announced measures to support their liquidity as the Iran crisis hits Gulf economies.
The package detailed by the CBUAE in a statement dated March 17 includes enhanced access to reserve balances of up to 30 percent of the cash reserve requirement and term liquidity facilities in both UAE dirhams and US dollars.
Abu Dhabi Commercial Bank chief economist Monica Malik said the measures echoed the central bank’s response to the COVID-19 pandemic.
“Again, we see this package aimed at ensuring that banks have sufficient liquidity and that credit continues to flow to the real economy. We see the package as supporting macro stability and broader economic confidence,” she said.
Dubai’s Emirates NBD and Abu Dhabi Islamic Bank jumped over 9 percent on Wednesday morning before paring gains, while ADCB rose as much as 6.6 percent.
