RIYADH: The Central Bank of the UAE (CBUAE) will launch a new index for overnight funding transactions denominated in UAE Dirham in December, Arab News reported.
Donia aims at providing market participants with interbank market data, and to improve transparency in domestic money market activities,as a part of the new Dirham Monetary Framework implementation plan.
It is a volume-weighted money market rate for all overnight secured and unsecured funding transactions of 10 million UAE Dirhams ($2.7 million) or greater.
“We, at the CBUAE, are confident that this new reference rate will provide additional transparency to the Dirham money markets.
It also helps the CBUAE in ensuring overnight money market rates are aligned to prevailing base rate,” governor of the CBUAE, Khaled Mohamed Balama said.
May 3, Abu Dhabi (BNA): With effect from Thursday, May 4, 2023, the Central Bank of the UAE (CBUAE) has decided to increase the Base Rate that applies to the Overnight Deposit Facility (ODF) by 25 basis points, from 4.90 percent to 5.15 percent.
Following the US Federal Reserve Board’s announcement on May 3, 2023, to raise the Interest on Reserve Balances (IORB) by 25 basis points, this decision was made.
Additionally, the CBUAE has chosen to keep the interest rate at 50 basis points above the Base Rate for short-term liquidity borrowed from the CBUAE under all standing credit facilities.
The Base Rate, which represents the overall monetary policy stance of the CBUAE, is tied to the US Federal Reserve’s IORB. Additionally, it offers a powerful
