The Central Bank of the UAE, which has sold off its gold reserves to book profits last year, has started diversifying its currency reserves by including other currencies in its overall basket.
Sultan bin Nasser Al Suwaidi, the Central Bank Governor, said the bank already holds some Euros as part of its reserves and it may consider buying more, along with other currencies, in the future.
The UAE dirham has always maintained dollar-heavy currency reserves. This is because the country's main exports - petroleum and other hydrocarbon derivatives - are invoiced in dollars.
However, Al Suwaidi pointed out the treasury department has a free hand to trade in currencies. (menareport.com)
© 2004 Mena Report (www.menareport.com)
