How is the interbank offered rate decide in United Arab emirates?

Answer 1

The interest rate charged by banks in the United Arab Emirates for interbank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates. Interbank rates reflect the average of eight banks, excluding the highest and lowest rates provided on a daily basis. United Arab Emirates banks launched a one-week interbank offered rate on Monday, striving to meet demand for a reference rate for short-term liquidity. UAE money market rates have been falling as the central bank and finance ministry of the second-largest Arab economy adopted a series of measures to defrost credit markets, including interest rate cuts and emergency funding facilities for banks. The one-month rate was 2.7875 percent on Monday, down from more than 4.3 percent in December. In December, the central bank said it was starting offering UAE dirham-U.S. dollar swap facilities with maturities ranging from one week to 12 months. (Reporting by Daliah Merzaban; Editing by Inal Ersan) The interest rate charged by banks in the United Arab Emirates for interbank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates. Similar to the London Interbank Offered Rate (LIBOR), EIBOR futures contracts are available for trade and there are various EIBOR offered rates depending on the life of the loan.