United Arab Emirates: Selected Issues

International Monetary Fund

No 2013/240, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; company; GRE; Yes; Dubai; GCC country; GRE debt; debt management; major GRE restructuring; Dubai GRE; Dubai debt restructuring deal; CBU regulation; GRE risk; GCC economy; Dubai World restructuring; Dubai government; Macroprudential policy; Financial sector stability; Corporate governance; Systemic risk; Debt restructuring; Global; Middle East (search for similar items in EconPapers)
Pages: 57
Date: 2013-07-30
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Citations: View citations in EconPapers (2)

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