Central Bank of UAE introduces new overnight deposit facility for conventional banks – The National
- Date: 06-Jul-2020
- Source: The National
- Sector:Financial Services
- Country:UAE
Central Bank of UAE introduces new overnight deposit facility for conventional banks – The National
The move will allow lenders to deposit excess liquidity with the central bank on an overnight basis
The Central Bank of the UAE is introducing a new overnight deposit facility from July 12. Ryan Carter / The National
July 6, 2020
July 6, 2020
The Central Bank of the UAE is introducing a new Overnight Deposit Facility that will allow conventional banks operating in the country to deposit their surplus liquidity at the central bank on an overnight basis.
The ODF, effective from July 12, will 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", it said.
With the introduction of ODF, the general stance of the CBUAE's monetary policy will be signalled through the interest rate of the ODF, which becomes the main policy rate of the CBUAE and will be referred to as the base rate, the regulator said.
"The introduction of this new facility is a reflection of the CBUAE's continuous efforts to
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