EIBOR rises by 10.6 percent

ABU DHABI, — EIBOR, Emirates Interbank Offered Rate, jumped by 10.6 percent for one night in five days, an increase of 8.3 percent over the same period, marking the most significant fluctuations in several years.

EIBOR rose to 2.22 basis points from 2.05, one week ago. On a one-night level, the interest rate hiked from 0.61 to 0.73. points today.

Interest rates applied to UAE Central Bank’s Certificates of Deposits declined after the Central Bank’s decision to increase them by 25 basis points following the US Federal Reserve Board’s decision to increase the Federal Funds Rate by 25 basis points recently.

Certificates of Deposit, which UAE Central Bank issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system.

The Central Bank calculates Eibor rates according to the calculation of average interest rates that are offered daily by 10 selected banks -EIBOR panel has been reduced from 11 to 10 banks starting from 29th March 2017- that operate in the domestic market, excluding the two highest prices and the two lowest prices from the approved list of banks.

Source: Emirates News Agency