Which institution became the United Arab Emirates’ central bank when it was established in 1980?
Answer
Central Bank of the UAE
The Central Bank of the UAE became the United Arab Emirates’ central bank when it was established in 1980.
The institution was created by Federal Law No. 10 of 1980, replacing the UAE Currency Board. Its responsibilities included issuing the national currency, maintaining monetary and financial stability, and organizing the country’s banking system.
The central bank issues and manages the UAE dirham. Since 1980, the dirham has been closely pegged to the United States dollar, a policy that has supported exchange-rate stability and influenced the country’s monetary framework.
The Central Bank of the UAE is a federal institution, so it differs from local financial authorities and commercial banks based in Abu Dhabi or Dubai. Its work covers the entire federation, including banking supervision, reserves, currency, and financial stability.