UAE Central Bank governor chairs regional meeting

Regulators have important role in setting policy to lessen economic fallout from pandemic, Abdulhamid Alahmadi said

The Central Bank of the UAE praised the UAE leadership for its efforts in aiding the country's economic recovery. Ryan Carter / The National

The governor of the Central Bank of the UAE has stressed the need for regulators to set policies that lessen the economic impact of Covid-19.

Chairing the Council of Arab Central Banks and Monetary Authorities Governors meeting, Abdulhamid Alahmadi highlighted the role the institutions play in protecting economies and promoting financial stability.

"During this meeting, the robust efforts led by the central banks and monetary authorities signalled issues and developments that represent key trends that policymakers must harness," Mr Alahmadi said.

The Covid-19 pandemic could cause a cumulative global gross domestic product loss of $35.3 trillion (Dh129.6tn) by 2025 if a vaccine were not developed, a study by the Australian National University said last week.

Central banks around the world have injected trillions of dollars in monetary stimulus so far this year.

The combined total assets of the US Federal Reserve, the European Central Bank and the Bank of Japan increased by 46.7 per cent by the end of August, data published on Friday by Haver Analytics and Yardeni Research showed.

The UAE Central Bank has provided Dh256bn of stimulus to the economy, through a Dh50bn targeted economic support scheme providing zero-cost collateralised loans for banks to extend to businesses, and by relaxing lenders' capital and liquidity requirements.

The meeting, which was held online because of the pandemic, was attended by the European Central Bank president Christine Lagarde, who discussed the measures taken so far and her outlook on the global economy.

Mohammed El Erian, chief economist at insurance giant Allianz, discussed international financial flows and their effect on emerging economies during the crisis.

Other topics addressed at the meeting, which was organised by the Arab Monetary Fund, included the role of FinTechs and the effects of climate change on the financial system, and efforts against money laundering and terrorist financing.