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23 February 2024

UAE Central Bank raises interest rates applied to the issuance of its certificates of deposits

By Wam

The Central Bank of the UAE, CBUAE, has announced that, as of Thursday March 16th, it will raise interest rates applied to the issuance of its Certificates of Deposits, in line with the increase in interest rates on the US Dollar, following the Federal Reserve Board’s decision to increase the Federal Funds Rate by 25 basis points at its meeting, as of today.

"The Repo Rate applicable to borrowing short-term liquidity from CBUAE against Certificates of Deposits has also been increased by 25 basis points to 1.25%," the bank added.

Certificates of Deposit, which CBUAE issues to banks operating in the country, are the monetary policy instrument through which changes in interest rates are transmitted to the UAE banking system.