Monetary Policy Framework

DAB employs a framework of targeting monetary variables in the formulation, adoption, and implementation of its monetary policy. Within this framework, DAB utilizes monetary policy instruments to manage the money supply and liquidity conditions in the economy.

Managing liquidity conditions is crucial for the economy, as any changes in liquidity levels have a direct impact on overall economic activity in the country. Therefore, adjustments to the liquidity rate must align with the economic growth rate and the demand for the national currency in the economy.