The UAE has called for setting up a regional financial market for the Middle East and East Asia to tackle any future financial crisis.
The recommendation was made by H.E Sultan bin Nasser Al Suweidi,Governor of the UAE Central Bank, while addressing yesterday the meeting of governors of central banks and monetary agencies of member states of the Organization of the Islamic Conference (OIC), which took place at the sidelines of the annual IMF-World Bank meetings being hosted by Turkey.
The proposed stock market will act as an alternative when global financial markets stop trading at time of crisis, the UAE official said.
He also briefed the meeting about proactive measures taken by the UAE to handle the world financial crisis since September 2008.
These measures included an AED 50 billion O/D facility, which was made available to banks through their current accounts at the Central Bank, CD swap facility of full bank holdings of Central Bank CDs,Discount window facility of bank holdings of bonds and sukuks issued by local governments or companies owned by them, Federal Government Guarantee of bank deposits maintained at all national banks and foreign banks that have substantial operations in the UAE, an AED 70 billion facility which was injected by Ministry of Finance into national banks in three stages.
