ABU DHABI, The UAE Central Bank’s term deposits in 2017 totaled AED636.2 billion, accounting for 46.1 percent of the total deposits which included 415.34 in local currency and an equivalent of AED220.85 in foreign currency.
According to CB’s figures, term deposits in the UAE-based banks increased by AED26.4 billion during 2017, which reflects the growing demand for this category of deposits, comparatively with other types of saving vehicles.
The growth is driven by the successive hikes in interest rates, since December 2016 through the same month in 2017.
Financial analysts surveyed by the Emirates News Agency (WAM) attributed the growth in term deposits to the fact that they are the safest saving haven for clients seeking assured gains in comparison with other investment vehicles.
During the month of January, term deposits at UAE-based banks rose by AED6 billion, to around AED616 billion, from AED610 billion in December 2016, while Q4 witnessed more liquidity to ratchet up term deposits at the CB during that period to around AED636.2 billion, an all-time high since 2013.
In the meantime, saving deposits hit a total of AED156.2 billion last year, comprising 11.2 percent of the total value of deposits.
Source: Emirates News Agency