A jump in interest rates in the UAE

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Abu Dhabi (WAM) The interest rates on transactions in dirhams between banks, “EIBOR” almost on various terms, have risen by more than 30%, in the wake of The decision of the Central Bank of the Emirates last Thursday By raising the “base rate” on overnight deposit facilities by 5 basis points. The central bank’s decision in this regard came after the US Federal Reserve announced that it raised the interest rate on excess reserves by 5 basis points at the end of last week.

In detail, the figures issued by the Central Bank showed an increase in the interest rate on interbank dirham transactions for one year to a level of 0.748 basis points on June 17, compared to 0.565 basis points on the 16th of the same month. As for the interest rate on the 6-month term, it rose to 0.643 basis points, compared to 0.489 basis points during the previous comparison periods, while it rose on the one-week period from 0.10 basis points to 0.118 basis points, and on the overnight period from 0.11 basis points to 0.117 basis point. It is noteworthy that the dirham’s link to the dollar requires the UAE Central Bank to emulate the decisions of the US Federal Reserve in everything related to interest rates.





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