U.A.E. Willing to Extend Measures to Stimulate Economy
U.A.E. Willing to Extend Measures to Stimulate Economy
(Bloomberg) --
The United Arab Emirates is willing to extend measures to stimulate the second-biggest Arab nation’s economy after it rolled out a $27 billion package last week, according to its central bank governor.
“We are willing to extend this scheme, so we have no hesitation to renew these measures,” Mubarak Rashed Al Mansoori told Bloomberg TV. “Before the end of the six months, we will assess and if this is required, we will renew this.”
The central bank last week rolled out a 100-billion dirham ($27 billion) package to support its banks as it seeks to mitigate the economic impact of the coronavirus.
U.A.E. plans to cut interest rates in lock-step with the Federal Reserve’s monetary actions, he said. Al Mansoori also said the U.A.E. is committed to the dollar peg.
“The peg has served us very well and continues to be. We are committed to the peg,” he said. “It has been productive to the U.A.E. economy with lowering of rates at this time, especially with also the low oil price.”
--With assistance from Farah Elbahrawy and Desley Humphrey.
To contact the reporters on this story: Abeer Abu Omar in Dubai at aabuomar@bloomberg.net;Yousef Gamal El-Din in Dubai at ygamaleldin@bloomberg.net
To contact the editors responsible for this story: Shaji Mathew at shajimathew@bloomberg.net, Claudia Maedler
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