The UAE Central Bank cut the reserve requirements for bank demand deposits and increased its economic stimulus package to Dh256 billion ($70bn) to mitigate the impact of the coronavirus outbreak on the country.
Reserve requirements for demand deposits for all banks were halved from 14 per cent to 7 per cent.
"The UAE Central Bank continues to take appropriate and necessary actions to support the UAE economy in light of the Covid-19 pandemic," governor Abdulhamid Saeed said.
The regulator also extended the duration of the Targeted Economic Support Scheme for affected retail and corporate customers, allowing banks and finance companies to defer the principal amount of loans and interest until the end of this year.
The programme was introduced last month to offer collateralised loans from UAE Central Bank funds at zero cost to all lenders in the Emirates and free up funds tied to banks' capital buffers.
On Sunday, the regulator also granted an extension of the capital buffer relief to the end of 2021 and allowed an extension of the zero-cost funding facility until December 31, 2020.
Lenders in the Tess programme can use a third of their current regulatory liquidity buffers. The overall release of regulatory liquidity buffers is estimated at Dh95bn, the regulator said.
The aggregate value of all capital and liquidity measures adopted by the regulator since March 14 has increased to Dh256bn, and consists of Dh50bn in capital buffer relief, Dh50bn in zero-cost funding support, Dh95bn in liquidity buffer relief and a Dh61bn reduction of cash reserve requirements.
"The additional measures announced today will effectively relieve the pressure on financial institutions, allowing them to continue to carry out their crucial role as the backbone of the economy while offering the required relief and continued access to funding for businesses and households,” Mr Saeed said.
The planned enforcement of certain Basel III capital standards will also be postponed until March 31, 2021 for all banks to reduce the operational burden on the financial industry during this challenging period, the regulator said.
A guidance for banks and finance companies on the application of the IFRS 9 financial reporting standard was also issued in collaboration with the regulatory authorities of financial free zones – the Financial Services Regulatory Authority of the Abu Dhabi Global Market and the Dubai Financial Services Authority of the Dubai International Financial Centre.
The regulator's latest measures come as the Covid-19 pandemic continues to gather pace in the West.
More than 1.2 million people have been infected globally and deaths have climbed to almost 65,000, according to the Johns Hopkins University, which is tracking the outbreak. Over 247,000 patients have recovered so far.
The outbreak has hit the global economy, which according to some estimates could contract more than 1.5 per cent this year.
The International Monetary Fund expects recovery to begin only next year. The pandemic has forced governments to shut borders, bringing travel and tourism to a halt. About 75m tourism sector jobs are at risk globally.
The CBUAE continues to take appropriate and necessary actions to support the UAE economy in light of the COVID-19 pandemic."
While governments around the world are ploughing more stimulus funds into their economies, unemployment numbers are surging in the West as companies lay off staff to stay afloat.
The number of new US unemployment insurance claims reached a record of 6.6m for the week ending March 28 – twice as high as the previous record set the week before.
The steps by the UAE Central Bank are "forward-looking, targeted and diverse, demonstrating that we are leveraging the full potential of the tools we have at our disposal, within our mandate", Mr Saeed said.
The regulator "expects banks and finance companies to make active use of the Tess facility, for the benefit of their customers and the UAE economy".
The boost in the stimulus package comes after a similar move by the UAE government, which increased its fiscal stimulus programme to Dh126bn last month.
The package is intended to "cut the cost of doing business, support small businesses and accelerate major infrastructure projects", Sheikh Mohammed bin Rashid, Vice President and Ruler of Dubai, said at the time.
THE BIG THREE
NOVAK DJOKOVIC
19 grand slam singles titles
Wimbledon: 5 (2011, 14, 15, 18, 19)
French Open: 2 (2016, 21)
US Open: 3 (2011, 15, 18)
Australian Open: 9 (2008, 11, 12, 13, 15, 16, 19, 20, 21)
Prize money: $150m
ROGER FEDERER
20 grand slam singles titles
Wimbledon: 8 (2003, 04, 05, 06, 07, 09, 12, 17)
French Open: 1 (2009)
US Open: 5 (2004, 05, 06, 07, 08)
Australian Open: 6 (2004, 06, 07, 10, 17, 18)
Prize money: $130m
RAFAEL NADAL
20 grand slam singles titles
Wimbledon: 2 (2008, 10)
French Open: 13 (2005, 06, 07, 08, 10, 11, 12, 13, 14, 17, 18, 19, 20)
US Open: 4 (2010, 13, 17, 19)
Australian Open: 1 (2009)
Prize money: $125m
Chef Nobu's advice for eating sushi
“One mistake people always make is adding extra wasabi. There is no need for this, because it should already be there between the rice and the fish.
“When eating nigiri, you must dip the fish – not the rice – in soy sauce, otherwise the rice will collapse. Also, don’t use too much soy sauce or it will make you thirsty. For sushi rolls, dip a little of the rice-covered roll lightly in soy sauce and eat in one bite.
“Chopsticks are acceptable, but really, I recommend using your fingers for sushi. Do use chopsticks for sashimi, though.
“The ginger should be eaten separately as a palette cleanser and used to clear the mouth when switching between different pieces of fish.”
UAE currency: the story behind the money in your pockets
The years Ramadan fell in May
INFO
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Man of the Match: Djibril Sidibe (Everton)
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How to avoid crypto fraud
- Use unique usernames and passwords while enabling multi-factor authentication.
- Use an offline private key, a physical device that requires manual activation, whenever you access your wallet.
- Avoid suspicious social media ads promoting fraudulent schemes.
- Only invest in crypto projects that you fully understand.
- Critically assess whether a project’s promises or returns seem too good to be true.
- Only use reputable platforms that have a track record of strong regulatory compliance.
- Store funds in hardware wallets as opposed to online exchanges.
RUGBY CHAMPIONSHIP FIXTURES
September 30
South Africa v Australia
Argentina v New Zealand
October 7
South Africa v New Zealand
Argentina v Australia
ESSENTIALS
The flights
Emirates flies from Dubai to Phnom Penh via Yangon from Dh2,700 return including taxes. Cambodia Bayon Airlines and Cambodia Angkor Air offer return flights from Phnom Penh to Siem Reap from Dh250 return including taxes. The flight takes about 45 minutes.
The hotels
Rooms at the Raffles Le Royal in Phnom Penh cost from $225 (Dh826) per night including taxes. Rooms at the Grand Hotel d'Angkor cost from $261 (Dh960) per night including taxes.
The tours
A cyclo architecture tour of Phnom Penh costs from $20 (Dh75) per person for about three hours, with Khmer Architecture Tours. Tailor-made tours of all of Cambodia, or sites like Angkor alone, can be arranged by About Asia Travel. Emirates Holidays also offers packages.
SPECS
%3Cp%3E%3Cstrong%3EEngine%3C%2Fstrong%3E%3A%202-litre%20direct%20injection%20turbo%20%0D%3Cbr%3E%3Cstrong%3ETransmission%3C%2Fstrong%3E%3A%207-speed%20automatic%20%0D%3Cbr%3E%3Cstrong%3EPower%3C%2Fstrong%3E%3A%20261hp%20%0D%3Cbr%3E%3Cstrong%3ETorque%3C%2Fstrong%3E%3A%20400Nm%20%0D%3Cbr%3E%3Cstrong%3EPrice%3C%2Fstrong%3E%3A%20From%20Dh134%2C999%26nbsp%3B%3C%2Fp%3E%0A
SPEC SHEET
Display: 10.9" Liquid Retina IPS, 2360 x 1640, 264ppi, wide colour, True Tone, Apple Pencil support
Chip: Apple M1, 8-core CPU, 8-core GPU, 16-core Neural Engine
Memory: 64/256GB storage; 8GB RAM
Main camera: 12MP wide, f/1.8, Smart HDR
Video: 4K @ 25/25/30/60fps, full HD @ 25/30/60fps, slo-mo @ 120/240fps
Front camera: 12MP ultra-wide, f/2.4, Smart HDR, Centre Stage; full HD @ 25/30/60fps
Audio: Stereo speakers
Biometrics: Touch ID
I/O: USB-C, smart connector (for folio/keyboard)
Battery: Up to 10 hours on Wi-Fi; up to 9 hours on cellular
Finish: Space grey, starlight, pink, purple, blue
Price: Wi-Fi – Dh2,499 (64GB) / Dh3,099 (256GB); cellular – Dh3,099 (64GB) / Dh3,699 (256GB)
Benefits of first-time home buyers' scheme
- Priority access to new homes from participating developers
- Discounts on sales price of off-plan units
- Flexible payment plans from developers
- Mortgages with better interest rates, faster approval times and reduced fees
- DLD registration fee can be paid through banks or credit cards at zero interest rates
The years Ramadan fell in May
SANCTIONED
- Kirill Shamalov, Russia's youngest billionaire and previously married to Putin's daughter Katarina
- Petr Fradkov, head of recently sanctioned Promsvyazbank and son of former head of Russian Foreign Intelligence, the FSB.
- Denis Bortnikov, Deputy President of Russia's largest bank VTB. He is the son of Alexander Bortnikov, head of the FSB which was responsible for the poisoning of political activist Alexey Navalny in August 2020 with banned chemical agent novichok.
- Yury Slyusar, director of United Aircraft Corporation, a major aircraft manufacturer for the Russian military.
- Elena Aleksandrovna Georgieva, chair of the board of Novikombank, a state-owned defence conglomerate.
Tips to keep your car cool
- Place a sun reflector in your windshield when not driving
- Park in shaded or covered areas
- Add tint to windows
- Wrap your car to change the exterior colour
- Pick light interiors - choose colours such as beige and cream for seats and dashboard furniture
- Avoid leather interiors as these absorb more heat
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
