UAE Interbank Rates Rise As Central Bank Introduces New System

Eibor rates are calculated daily for maturities ranging from overnight to one year.

Most United Arab Emirates interbank offered rates (Eibor) rose on Sunday as the central bank introduced a new way of calculating them, seeking to make the system more transparent and reflect market conditions more accurately.

The three-month rate climbed to 2.43820 per cent from 2.38683 per cent on Thursday, while the one-year rate jumped to 3.03998 per cent from 2.93767 percent. Only the overnight rate fell, to 1.36775 per cent from 1.50500 per cent.

Eibor rates, used in many UAE financial transactions, are calculated daily for maturities ranging from overnight to one year. Under the present system, the two highest and two lowest rates quoted by banks are discarded and the rest are averaged.

The banks in the new panel will be: First Abu Dhabi Bank, Emirates NBD, Mashreq bank, Abu Dhabi Commercial Bank, Commercial Bank of Dubai, Union National Bank, HSBC Middle East and Standard Chartered, the sources said.

The new system will set overnight, one-week, one-month, three-month, six-month and one-year rates.

Source

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