ID :
39501
Thu, 01/08/2009 - 12:50
Auther :
Shortlink :
http://m.oananews.org//node/39501
The shortlink copeid
Marked reduction in EBOR rate: Central Bank
Abu Dhabi, Jan 8, 2009 (WAM) - Central Bank of the UAE announced yesterday that since the launch of its Dollar/Dirham swap facility, there has been a noticeable reduction in EBOR rate.
While this decrease is more pronounced at the short end (1 month period), the longer term rates between 2-12 months have also seen decreases. The fall in the one month rate is evident from the accompanying chart which presents EBOR 1 month rates from July, 2008 till present.
"Central Bank has provided banks operating in the UAE with Dirham funds amounting to AED 3.7 billion so far via Dollar/Dirham swaps." A statement released by the Central Bank urged banks to use the various liquidity providing facilities offered by it, namely the Dollar/Dirham swap and the Discount Facility.
"Their wider usage will further push EBOR rates down and help the UAE economy in performing to its potential," it said.
While this decrease is more pronounced at the short end (1 month period), the longer term rates between 2-12 months have also seen decreases. The fall in the one month rate is evident from the accompanying chart which presents EBOR 1 month rates from July, 2008 till present.
"Central Bank has provided banks operating in the UAE with Dirham funds amounting to AED 3.7 billion so far via Dollar/Dirham swaps." A statement released by the Central Bank urged banks to use the various liquidity providing facilities offered by it, namely the Dollar/Dirham swap and the Discount Facility.
"Their wider usage will further push EBOR rates down and help the UAE economy in performing to its potential," it said.
