Central Bank issues AED, USD and Euro CoDs
Central Bank of the UAE announced that it will, with effect from Wednesday 28 November 2007, issue Certificates of Deposit in UAE Dirham, US dollar and Euro to banks operating in the UAE through auction, for maturities ranging from one week to 5 years.
According to a statment by the bank, the CoDs issuance was made in order to meet needs of banks, develop and add depth to domestic financial market and to create a real yield curve for the UAE Dirham, which would serve as a benchmark in financial markets.
The new issuance system will enable banks to further consolidate their liquidity position by conducting REPO agreements with the Central Bank, which is considered temporary lending of Dirhams against pledging of Certificates of Deposit. Source
According to a statment by the bank, the CoDs issuance was made in order to meet needs of banks, develop and add depth to domestic financial market and to create a real yield curve for the UAE Dirham, which would serve as a benchmark in financial markets.
The new issuance system will enable banks to further consolidate their liquidity position by conducting REPO agreements with the Central Bank, which is considered temporary lending of Dirhams against pledging of Certificates of Deposit. Source
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