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Sunday 03 March 2024


Sunday 03 March 2024

CBUAE: "FATF" Announcement of UAE Completion of the Requirements is a Testament of Concerted National Efforts to Combat Money Laundering and Terrorism Financing

Press Release

Tuesday 06 February 2024


Tuesday 06 February 2024

CBUAE revokes the licence and registration of Smart and Secure Insurance Agent

Press Release

Monday 05 February 2024


Monday 05 February 2024

CBUAE launches the fifth cohort of the Executive Certificate for Risk-Based Supervision Professionals

Press Release

Wednesday 31 January 2024


Wednesday 31 January 2024

CBUAE Maintains the Base Rate at 5.40%

Press Release

Tuesday 30 January 2024


Tuesday 30 January 2024

CBUAE imposes a financial sanction of AED 1.2 million on an insurance company operating in the UAE

Press Release

Monday 29 January 2024


Monday 29 January 2024

Mansour bin Zayed witnesses UAE Central Bank's Golden Jubilee

Press Release

Tuesday 16 January 2024


Tuesday 16 January 2024

Summary Report - Monetary Banking Developments - November 2023

Press Release

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Reserve Management

Our Reserve Management department manages the UAE’s official foreign exchange reserves, in line with:

  • The Central Bank of the UAE Investment and External Fund Management Policies, which are approved by the CBUAE Board of Directors.
  • International best practices.

Our Role

The UAE’s official reserves are managed in line with:

  • The global standards outlined in the International Monetary Fund’s (IMFs) Guidelines for Foreign Exchange Reserve Management.
The policy objectives in holding the official reserves are to:
  • Support confidence in the exchange rate policy.

  • Reduce fluctuations arising from the balance of payments and/or the domestic banking system.

  • Facilitate foreign currency transactions between government departments and the local banking system.

  • Maximise returns at an acceptable level of risk.

External fund management

The External Management & Analytics Team consists of professionals with experience in analysis, selection and oversight of external fund managers. The team is guided by the External Fund Management Policy, as approved by the CBUAE Board of Directors. The rationale in using external fund managers is that specialist external expertise will contribute most effectively to investment returns on a risk-adjusted net-of-fee basis. The CBUAE uses external managers for specialist mandates where internal capacity is not available, or as a peer group for larger internal mandates.

Internal Investment Management

The Internal Investment team consists of professionals experienced in managing the foreign exchange, gold, money and capital market assets held in the official reserves. These assets are invested in global financial markets, in line with the Investment Policy and detailed Investment Guidelines.

FAQs

The official foreign exchange reserves are legally owned by the Central Bank of the UAE and form part of its balance sheet.

The official foreign exchange reserves stand at around $100 billion. The most recent data are found in the monthly statistics section of this website.  

The foreign exchange reserves are prudently managed by the Central Bank of the UAE and are invested in accordance with the Investment Policy and External Fund Manager Policy approved by the Board of Directors.  

The official reserves are invested in a well-diversified global bond portfolio in all major bond markets and a sizeable portfolio of money market assets. All assets are of investment grade quality and currency risk is fully hedged to the US dollar, as the Dirham is pegged to the US dollar. This ensures the assets are safe and liquid, while also obtaining a good risk-adjusted return.  

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Last updated on: Thursday 28 July 2022

Total visitors 10899