UAE Central Bank launches intraday liquidity facility

SourceGulf Today
SectorEconomy
CountryUAE

Picture used for illustrative purpose. The Central Bank of the UAE (CBUAE) announced on Thursday that, effective April 21, 2021, a new liquidity management facility (ILF) will be introduced as part of the implementation plan of the new Dirham Monetary Framework. The objective of the facility is to provide eligible counterparties - participants in the UAE Funds Transfer System - access to Dhs funding from the CBUAE on an intraday basis, to ensure that payments are settled on a real-time basis. To obtain intraday funds from the CBUAE, participants in the UAE Funds Transfer System are required to submit eligible collateral, as per the requirements set out in the terms and conditions of the new facility. The ILF will be offered at zero-cost in order to incentivise Eligible Counterparties to repay borrowed funds by the designated cut-off time at the end of each business day. Commenting on ...read more...