UAE Central Bank cuts interest rates
The Central Bank announced that it has lowered interest rates on Certificates of Deposit, which it issues to banks operating in the UAE, in line with the new level of interbank interest rates on US Dollar deposits in International Financial Markets as from today Thursday 01/11/2007.
Certificates of Deposit, which the Central Bank issues to banks operating in the UAE, are the mechanism through which interest rates on UAE Dirham are changed in the banking system, and which banks use as benchmark for accepting deposits as well as for extending loans to customers.
The UAE's Central bank's most recent decision to lower interest rates comes after the US The Federal Open Market Committee's decision today to lower its target for the federal funds rate 25 basis points to 4 1/2 percent and is a result of the UAE dirham's dollar peg. Source
Certificates of Deposit, which the Central Bank issues to banks operating in the UAE, are the mechanism through which interest rates on UAE Dirham are changed in the banking system, and which banks use as benchmark for accepting deposits as well as for extending loans to customers.
The UAE's Central bank's most recent decision to lower interest rates comes after the US The Federal Open Market Committee's decision today to lower its target for the federal funds rate 25 basis points to 4 1/2 percent and is a result of the UAE dirham's dollar peg. Source
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