CBUAE’s event explores strategic role of data in central banking

The Central Bank of the UAE (CBUAE) has hosted Central Bank Data Leaders and Professionals Conference in Abu Dhabi, under the theme “Data- The Solid Foundation of Central Bank Operations in Times of Uncertainty”.

The conference welcomed senior officials from the CBUAE and over 35 other central banks and international financial institutions across the globe to explore the strategic role of data in central banking.

The event aimed to foster dialogue and the exchange of expertise among nations, leverage global best practices to keep pace with digital and economic transformations, and enhance the readiness of central banks to meet future requirement.

The conference featured a series of discussions highlighting the importance of data-driven innovation in strengthening monetary and financial oversight, as well as opportunities for international cooperation to enhance central bank operations amid thetimes of uncertainty.

In-depth sessions explored the evolving data landscape and the role of artificial intelligence (AI), analysing the mutual impact between AI and data management, how data governance enables AI development, and AI’s influence on data structures.

Discussions also covered strategic visions for data operating models, the architecture of data management and analytics, and the importance of tying data investments and change management to tangible business outcomes. The conference further highlighted success stories and key lessons learned from practical implementations.

The conference also featured interactive panel discussions that emphasised how data can be transformed into strategic assets or products that meet the evolving needs of market participants, licensed financial institutions, and commercial entities. Additionally, participants were introduced to the current analytics toolkits used within central banks, offering insights into practical applications and technological advancements in data analysis.

Ahmed Saeed Al Qamzi, Assistant Governor of Banking and Insurance Supervision at the CBUAE, stated, “Hosting of the Central Banks Data Leaders and Professionals Conference underscores our commitment to harnessing advanced data analytics and fostering collaboration across local, regional, and international levels. The strategic use of data is vital to enhancing decision-making, improving operational efficiency, and achieving our long-term objectives with precision and agility.”

He added, “We have significantly advanced our data capabilities to reinforce oversight of the UAE’s monetary and financial systems. The first phase of our central data management platform is now complete, enabling Supervisory Technology (SupTech) operations through integrated data collection, analysis, and protection. Our data governance framework has been strengthened with comprehensive policies covering governance, quality, risk management, and records. Simultaneously, we have accelerated AI integration, developed 20 machine learning-based applications and evaluated over 60 pre-trained AI models—streamlining supervisory reporting and enhancing risk management across the board.”

Days earlier, the Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of the Republic of Turkey (CBRT) signed a bilateral currency swap agreement between the UAE Dirham (AED) and the Turkish Lira (TRY), in addition to two memorandums of understanding (MoUs): one to promote the use of local currencies (AED - TRY) for cross-border transactions, and another to interlink their payment and messaging systems.

These agreements aim at promoting financial and economic collaboration and strengthen bilateral trade.

The agreement and MoUs were signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE and Ph.D. Fatih Karahan, Governor of the Central Bank of the Republic of Türkiye, in the presence of assistant Governors and senior officials from both parties.

The nominal size of the swap agreement is mutually Dhs18 billion and TRY198 billion. It is designed to promote bilateral trade with the aim of further strengthening financial cooperation between the two countries through providing local currency liquidity to financial markets, enabling more effective and efficient settlement of cross-border financial and commercial transactions.

The first MoU aims to establish a framework for promoting the use of the UAE Dirham (AED) and the Turkish Lira (TRY) in settling cross-border transactions. it endeavour to develop the foreign exchange market, facilitate trade and foreign remittances, boost investment, as well as accelerate economic growth and financial stability in both nations.

The MoU specifically includes establishing a local currency settlement scope to expand the use of both currencies in all current and capital accounts transactions, and deepening the exchange of information and experience to achieve shared goals.

WAM