The total value of short-term deposits in UAE banks reached Dh439.7 billion ($119 billion) by the end of June, rising by Dh27.9 billion during the first half of the year, according to UAE Central Bank statistics.

According to Central Bank data, short-term deposits secured progressive growth since the beginning of 2016, with the month of March seeing the highest hike worth Dh14.6 billion, ratcheting their total value to Dh439 billion from Dh424 billion in February, when they were up by Dh8.7 billion, reported Wam, the Emirates official news agency.

The term 'short term deposit' refers to an amount of money placed in a bank or financial institution for a term no longer than one year. It will usually earn a fixed rate of interest.

In April, short-term deposits hit an all-time high of Dh442 billion, an increase of Dh3 billion against the previous month. In May, they declined by Dh5 billion before rebounding in June to Dh439.7 billion, an increase of Dh2.5 billion over the previous month.

Short-term deposits account for 30 per cent of total bank deposits in UAE banks, which surged to Dh1.46 trillion by the end of H1, according to UAE Central Bank figures.