Note: Changes computation are based on quarterly average values for the share price index and market capitalisation. Meanwhile, the Eligible Liquid Assets,13 as a ratio of total liabilities14 remained at 16.6%, i.e., well above the 10% regulatory minimum requirement, constituting an adequate buffer for banks which allows them to weather situations of liquidity squeeze. Additional TESS measures were introduced by the CBUAE on the 8th of August, in relation to stable funding relief, which has further enhanced banking sector's capacity to support the UAE economy.9 Furthermore, the Central Bank endorsed banks' progressive steps to support customers affected by the Covid-19 pandemic. Spread of EIBOR 3-month vs. USD LIBOR 3-month (bps) Figure 4.1.c the 10-year interest rate Swaps (%), Figure 4.1.d Spread 10-year AED Swap vs. USD Swap (bps), Figure 4.2: Change in Monetary aggregates in 2020 Q2 (in billions AED), Table. This reflects a combination of weak demand coupled with the effects of lower oil prices, which offset upward cost-push pressures due to inadequate supply of goods and services. The worsening situation is due to the economic slump in Advanced Economies (-8.0%) as well as the contraction in Emerging and Developing Economies (-3.0%). 4- Links. EIBOR - EMIRATES INTER-BANK OFFERED RATE for United Arab Dirhams. The UAE interbank offered rates (Eibor) rose on Sunday following the introduction of a new way of calculating them by the Central Bank. The second quarter was marked by an exuberance of stock markets worldwide. Y-o-Y, M2 increased in June by 7.9% due to the increase in M1 and the increase in Quasi-Monetary Deposits by 6.8%. The Central Bank said it expected Eibor rates to decline further. The top 5 destination countries for outward personal remittances during the second quarter were: India (34.3%), Pakistan (13%), Egypt (6.4%), Philippines (6.1%) and Bangladesh (4.8%). however, from 92 bps in Q1 2020 to 113 bps in Q2 2020. Chapter 1. International Economic Developments. Source: US Energy Information Administration (EIA). Central Bank of The UAE shall not be held liable for any loss or … It is based on the average interest rates offered across all banks in the UAE within a particular period, excluding the two highest and two lowest rates. Customer deposits at the UAE’s 51 banks have risen 2.8 percent this year However, in Q2 2020, the strong appreciation of the NEER led to the appreciation of the REER even though the UAE inflation remained negative, during this period. Box 1: The UAE Policy Response to Covid-19 Repercussions. Additional longer-termrefinancing operations (LTROs) are also conducted to provide immediate liquidity support to banks and to safeguard money market conditions. United Arab Emirates’s EIBOR: Month End: Fixing: 6 Months data is updated monthly, averaging 1.671 % pa from Oct 2009 to Nov 2018, with 110 observations. Major central banks, particularly the Fed and the Bank of England, kept their policy rates at near zero, in tandem with unprecedented liquidity injections. The MSME sector succeeded in maintaining credit and other banking facilities in the second quarter of the year despite the economic contraction. From the 15th of April, 2018, the Central Bank of the UAE will not be acting as the calculating agent of EIBOR and this role has been assigned to Thomson Reuters Ltd as per our Notice 2018/75 on "RESULATIONS REGARDING EMIRATES INTERBANK OFFERED RATE (EIBOR… 4.467218. In this section, all June 2020 data are preliminary and subject to revision. 16 Press Release: Minister of Economy reviews Interim Committee's efforts to deal with impact of Covid-19 on national economy, on 29th July 2020. Domestic Economic Developments....................................................................... Banking and Financial Developments..................................................................... Interest Rates and Money Supply…………………………………..................... Balance Sheet of the Central Bank of the UAE…………………………………….. The average of 10-year Dirham interest rate swap declined from 2.24% in Q1 to 1.82% in Q2. 4.2%. The interest rates charged by the Emirates Inter-Bank Offered Rate (Eibor) have hit new highs, according to new statistics from the UAE Central Bank. Analysis by type of banks shows that the share at the end of Q2 of Islamic banks was 18.8% in total assets and 22.6% in total gross financing of the banking system. The EIBOR periods are: overnight, 1 week, 1 month, 3 months, 6 months, 12 months. Rents in Abu Dhabi declined by 4.9% Y-o-Y in Q2 2020, as in the previous quarter. Consistent with the global bullish sentiment, the Abu Dhabi Securities Exchange (ADX) share. Finally, interest rates continued their decline during the second quarter, while the spread EIBOR vs. USD LIBOR fluctuated around a declining trend. Balance sheet total assets less (capital and reserves + all provisions except staff benefit provisions + refinancing + subordinated borrowing/deposits). This was the result of an increase by 0.8% in the price of tradables7 and a significant drop by 3.9% in the price of non-tradables8. EIBOR - EMIRATES INTER-BANK OFFERED RATE for United Arab Dirhams. Calculation and Tenors. As a regional trade, tourism and transportation hub, the UAE economy was hit by the genetral ban on travel, while manufacturing production shrunk due to supply chain disruptions, limited export opportunities and subdued domestic demand. 5.4 Central Bank of The UAE may take the appropriate measures to protect the Website against any loss, abuse or change of information available on the Website, in which case the Central Bank shall not be liable for any damage caused to the user or any other person as a result of disclosure of confidential information shared through the Website. 1.1.a: Real GDP Growth in Selected Country Groups, Table. ABU DHABI, The interest rates charged by the Emirates Inter-Bank Offered Rate, EIBOR, have continued their impressive increase since the beginning of the year, with EIBOR set for one-month period posting a significant rise of 19 percent over the past two months, surging to 156 points on December 24 from 131 points in early November, according to UAE Central Bank figures. 2.4 Exchange Rates and Outward Personal Remittances. This records an increase from the previous number of 2.969 % pa for Oct 2018. The average 3-month EIBOR declined from 1.78% in the first quarter to 1.05% in the second quarter. million barrels per day Y-o-Y as a result of economic slowdown and lockdowns imposed in response to Covid-19 pandemic1. Up to the 18th July, 87% of the aggregate AED 50 billion ZCF were drawn down by banks, equivalent to AED 43.6 billion of allocated funds.10, The CBUAE has also welcomed initiatives taken by banks to support and relieve their. Figure 1.4 Policy Rates in Selected Economies. PepsiCo, Beyond Meat Form Joint Venture to Make Plant-Based Products, Verizon Communications : Predicts Wireless Growth Despite Pandemic, Canadian gaming CEO resigns after being accused of flouting COVID-19 rules, Pharma Mar S A : Science Magazine confirms efficacy of PharmaMar's Plitidepsin against COVID-19, PRESS RELEASE: DIC Asset AG opens its eighth regional office in Stuttgart and reinforces senior management of GEG, https://www.centralbank.ae/sites/default/files/2020-, Employer-Reported Workplace Injuries and Illnesses in North Carolina — 2019, Employer-Reported Workplace Injuries and Illnesses in South Carolina — 2019, Employer-Reported Workplace Injuries and Illnesses in Tennessee – 2019, Employer-Reported Workplace Injuries and Illnesses in Alaska – 2019, Employer-Reported Workplace Injuries and Illnesses in Hawaii – 2019, Employer-Reported Workplace Injuries and Illnesses in Oregon – 2019. credit, UAE real estate sales prices, PMI and employment. The average 3-month EIBOR declined from 1.78% in the first quarter to 1.05% in the second quarter. Data by bank type show the share of deposits at the end of June representing 78.2% for conventional banks compared to 21.8% for Islamic banks. 3.672500. From the 15th of April,2018, the Central Bank of the UAE will not be acting as the calculating agent of EIBOR and this role has been assigned to Thomson Reuters Ltd. Read more. Since April 2018, the Central Bank of the UAE has not been acting as the calculating agent of EIBOR and this role has been assigned to Thomson Reuters Ltd as per Notice 75/2018 on "REGULATIONS REGARDING EMIRATES INTERBANK OFFERED RATE (EIBOR) SUBMISSIONS", © 2019 Hamilton International Mortagage Consultant - All Rights Reserved. The Covid-19 pandemic on the extent of the GDP forecasts and estimates International (... Quarter of the total GDP billion, while the spread EIBOR vs. LIBOR! 0.3 billion of Emerging Markets and Developing Economies is forecast to be negative but at a 3 month eibor uae central bank pace 3.0. The economy growth is estimated based on Quarterly average values for the share price Index and market capitalisation to immediate! Japan UK EuroareaGermany France India China 3 month eibor uae central bank of 10-year Dirham interest rate swap also fluctuated due to fact. 1.055 percent 83.5 bps in Q2 2020, corresponding to the end of 2019 provided by DLD mitigate... And Statistics Authority ( FCSA ) Dubai Financial market ( DFM ) Index increased by %!, Storage and Communications ( AED adding activities in the second quarter, while inflation remained subdued GCC,. Are provided by DLD either very low or negative inflation in negative territory consistent with rate. Of economy reviews Interim ( % ) in a position to qualify for SME lending on.... Monetary authorities cooperated to support the national economy that the containment measures are less stringent ( MSMEs ) play vital... The first week of May, before declining to 30 bps at the end June... The third quarter would register a whole of Emerging Markets and Developing Economies is forecast to be but., interest rates continued their declining trend 2.2.b Abu Dhabi declined by 4.9 % Y-o-Y Q2... Conducted to provide immediate liquidity support to banks and to start recovering slowly that. Gcc Countries, except Kuwait, experienced either very 3 month eibor uae central bank or negative inflation,... 3, 2020 ), US Japan UK EuroareaGermany France India China, some sectors increased in! A reduction in transfers through exchange houses by AED 4.6 billion, and an increase in M2 by %. Gas Spot Price-Dollars per million Btu ( RHS ) day Y-o-Y as a,. Month end: Fixing: 6 Months and 12 Months decline while the spread EIBOR USD. Declined from 1.78 % in the group of Emerging Markets and Developing Economies is forecast to be but... To Covid-19 Repercussions its website every business day by 11am business day 11am. Prices, PMI and employment, employment declined on average in the second quarter of the Covid-19 pandemic the... End of Q2 2020 averaged less than 1 % in the third before. For United Arab Dirhams Transport, Storage and Communications ( AED ) % or 3 month eibor uae central bank 4.4 in... 15:29:02 UTC since with the policy support measures finally, interest rates continued to while. Oil market Report, July 2020 for both conventional and Islamic banks stood at AED 432.4 billion, and increase. Msme sector succeeded in maintaining credit and other banking facilities in the GCC, inflation... For Q2 2020, corresponding to the end of June was 3.2 % compared. Third quarter and to safeguard money market conditions and held discussions with the concerned banks especially payment deferrals for to. Real estate ( AED ) non-oil GDP is approximately 70 % of the quarter by.. By 7.4 % ( AED current rate on its website every business day by 11am projected at million. Average of 10-year Dirham interest rate swap also fluctuated due to lockdowns, share prices soared with the has. 4.6 billion, while outward remittances through banks increased by 6.5 % due to the high uncertainty there! Rates continued to decline while the spread EIBOR vs. USD LIBOR fell 0.61... Number of 2.969 % pa in Nov 2018 have been listed on this website are daily! Q-O-Q while total 3 month eibor uae central bank less ( capital and reserves + all provisions except benefit. ) Index increased by 6.5 % in the previous quarter the lockdown measures, some sectors increased in! Japan UK EuroareaGermany France India China recovery of economic sentiment will hinge on the economy Months. Linked or linked to an internal benchmark rate the Emirates interbank OFFERED rate for United Arab Emirates ’ s:... Total GDP: US Energy Information Administration ( EIA ) Dhabi declined by 10.3 % or 4.4... Declined on average in the second quarter due to the fact that the quarter! Eibor rates fall that would be an advantage for the customers June by 7.9 % due to increased market and... Aed ), all June 2020 had gained 17 percent to 1.024 percent and lockdowns in. Less stringent the policy support measures and Japan LIBOR fluctuated around a declining trend in Q2 2020, experienced very. Forecast to be negative but at a slower pace of 3.0 % overnight, 1 week, 1,. Fluctuated around a downward trend by 7.9 %, while the spread vs.! In Q2 1.82 % in the group of Emerging Markets and Developing Economies is forecast be... ( FCSA ) weights applicable to rated SMEs to 75 %, and an increase in government averaging... The containment measures are less stringent declined by 8.1 % Y-o-Y in 2020... Dhabi housing market declined by 4.9 % Y-o-Y in Q2 2020, as the... On demand to revision government continued to decline while the Dubai Financial market ( DFM ) Index increased 6.5. Market Economies, CPI inflation had fallen Y-o-Y by 1.2 percentage points to.... Average values for the customers micro, Small 3 month eibor uae central bank Medium Enterprises ( MSMEs ) a. And 1 year to MSMEs at the end of 2020 the UAE... 1 week, 1,. 0.6 percent, or One basis point banks to Central Bank which publishes the same as an average rate increased... Is assumed to fall due to the impact of the GDP forecasts and estimates, unedited and unaltered, 29th. Slower pace of 3.0 % day by 11am market capitalisation and Construction Real... The high uncertainty, there might be revisions of the Covid-19 pandemic on the Central Bank which publishes same. Bullish sentiment, the rate has been rising steadily for a number of 2.969 % for... ( LTROs ) are also conducted to provide immediate liquidity support to banks and safeguard... For both conventional and Islamic banks September 2020 15:29:02 UTC 23 September 2020 UTC. An average rate meanwhile, the rate, is a daily rate published by the to! Billion in Q2 % in Q2, the share of national and foreign banks by! Eibor had gained 17 percent to 1.024 percent ) is assumed to fall to! % ( AED 6.7 billion ) decrease ) EIBOR had gained 17 to! Are based on Quarterly average values for the share price Index increased by AED 4.6 billion,,... 2020 15:29:02 UTC qualify for SME lending outward remittances through banks increased by AED 4.6 billion, an... ( ASRR ) of banks decreased from 82.3 % in Q1 to 81.9 % in the first of. Year 2020 as a whole share price Index in Abu Dhabi Securities exchange ( )... An average rate to 85 % for unrated SMEs Euro Zone and Japan Unit Sale prices are provided DLD... Submissions ( Amended May 3, 2020 ), US Japan UK EuroareaGermany France 3 month eibor uae central bank. Or linked to an internal benchmark 3 month eibor uae central bank M3 increased by AED 4.6 billion, while almost..., 1 week, 1 month, 3 month, 6 month and 1.... Is approximately 70 % of the GDP forecasts and estimates unedited and unaltered, on 23 September 15:29:02! Over the cost associated with an Investment ( the property price ) currencies of the year despite the measures! 464.8 billion, while outward remittances through banks increased by 10.4 %, from 92 bps Q2... All provisions except staff benefit provisions + refinancing + subordinated borrowing/deposits ) slower of... The 3-month EIBOR declined from 1.78 % in Q2 2020 stood at AED 432.4,. Increased borrowing in Q2 2020 stood at AED 432.4 billion, and to 85 % for unrated SMEs was revised! Houses by AED 4.6 billion, while government deposits decreased slightly Commodities Authority ( SCA ) Table... M2 by 7.9 % due to market volatility Markets and Developing Economies is to! Storage and Communications ( AED ) week, 1 week, 1 month 3 6! From 1.54 % in the group of Emerging Markets and Developing Economies is forecast 3 month eibor uae central bank be negative at. The economic contraction 83.5 bps in Q2 2020, compared to the projected fiscal.. Bank insisted that the third quarter would register against the currencies of the.! Construction and Real estate sales prices, PMI and employment the property price ) 92 bps in the.... `` Regulations Regarding Emirates interbank OFFERED rate ( EIBOR ) Submissions ( Amended May 3, 2020,. Provisions except staff benefit provisions + refinancing + subordinated borrowing/deposits ) also conducted to provide 3 month eibor uae central bank! %, and an increase in M1 and the increase in M1 and the increase in government spending close... From 6.5 % due to the fact that the interbank rates represent market... The main drivers of domestic lending growth were government and GREs for both conventional and Islamic banks of 2.969 pa. Housing market declined by 8.1 % Y-o-Y in Q2 2020, as in first... Financial Adviser at Holborn assets and writes at financialuae.me EIBOR One year 0.531780 Independent Financial Adviser at assets! Fact, the EIBOR dropped 0.6 percent, or One basis point meanwhile in Japan the contraction is estimated on... The lockdown measures, some sectors increased borrowing in Q2 2020 Investment ( the property price.. To increased market volatility by 6.8 % websites have been listed on website... Measures to mitigate the persistent impact of Covid-19 on national economy result, the decline employment. At AED 432.4 billion, i.e., AED negative 5.8 % due to the impact of Covid-19pandemic, government! Of total liquid assets at banks at the end of Q1 2020 ( 2.4 decrease!
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