The United Arab Emirates prefers to use dollar-based instruments such as deposits rather than low-yielding US Treasuries to manage foreign reserves, its central bank governor said.
Sultan Nasser Al-Suwaidi also told Reuters in an interview that he expected the UAE economy to grow by up to 4 percent this year, driven by the tourism and trading sectors.
Sultan Nasser Al-Suwaidi also told Reuters in an interview that he expected the UAE economy to grow by up to 4 percent this year, driven by the tourism and trading sectors.
Concerns over US Treasuries, one of the favorite instruments for the world's central banks in managing reserves, are rising as US politicians must reach a deal to raise the debt limit and avoid a potential default on the country's $14.3 trillion debt by August 2.
Talks fell apart on Thursday as Republicans walked out over Democrat demands for tax increases as part of a deficit cut plan.
Asked how much in US Treasuries the UAE central bank held as part of its reserves, Mr. Al-Suwaidi said: "Not much."
