IMF Staff Country Reports

United Arab Emirates: Selected Issues

July 30, 2013

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United Arab Emirates: Selected Issues, (USA: International Monetary Fund, 2013) accessed December 9, 2024

Also available in: العربية

Summary

This Selected Issues paper on the United Arab Emirates highlights the macroprudential policies. The fixed exchange rate and persistent structural liquidity surpluses in upswings add to the difficulties in managing aggregate demand contain credit expansion. The exchange rate peg and the open capital account allow limited room to deviate from the U.S. interest rates. Monetary policy is further constrained by limited liquidity management capabilities, as liquidity forecasting is in its infancy, and central banks liquidity management relies primarily on reserve requirements and standing facilities for liquidity absorption. The lack of a local currency fixed-income market raises the prominence of real estate as an asset class for investment and the exposure of the banking system to the real estate sector.

Subject: Asset and liability management, Banking, Corporate governance, Debt restructuring, Economic sectors, Financial sector policy and analysis, Financial sector stability, Macroprudential policy, Systemic risk

Keywords: CBU regulation, Company, Corporate governance, CR, Debt management, Debt restructuring, Dubai, Dubai debt restructuring deal, Dubai government, Dubai GRE, Dubai World restructuring, Financial sector stability, GCC country, GCC economy, Global, GRE, GRE debt, GRE risk, ISCR, Macroprudential policy, Major GRE restructuring, Middle East, Systemic risk, Yes

Publication Details

  • Pages:

    57

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Country Report No. 2013/240

  • Stock No:

    1AREEA2013002

  • ISBN:

    9781484336038

  • ISSN:

    1934-7685

Notes