UAE Central Bank to launch new overnight deposit facility – ZAWYA

UAE Central Bank to launch new overnight deposit facility – ZAWYA

UAE Central Bank to launch new overnight deposit facility | ZAWYA MENA Edition HomeEconomyGCCArticleUAE Central Bank to launch new overnight deposit facility 'This new facility will support banks operating in the UAE in proactively managing their day-to-day liquidity'    Vehicles stop at a red light in front of the main branch of UAE Central Bank in Abu Dhabi, January 29, 2013. Image used for illustrative purposeThe UAE Central Bank said on Monday it would introduce a new overnight deposit facility as of July 12 to enable conventional banks operating in the UAE to deposit their surplus liquidity at the apex bank on an overnight basis.In a statement, the CBUAE said the introduction of the Overnight Deposit Facility (ODF) is the first step towards implementation of the new "Dirham Monetary Framework" announced earlier this year."The ODF shall be the prime facility for managing surplus liquidity in the UAE banking sector prior to the launch of the Monetary Bills Programme and shall replace issuance of one-week Certificate of Deposits," the banking regulator said.In a statement, the CBUAE said the introduction of the Overnight Deposit Facility (ODF) is the first step towards implementation of the new "Dirham Monetary Framework" announced earlier this year.The