The Central Bank of the Emirates announced the introduction of new general terms and conditions for the available credit facilities and liquidity insurance facilities, according to which financial institutions licensed in the UAE can obtain reserve funds from the Central Bank. on an overnight basis or for other maturity periods by depositing eligible collateral.
The Central Bank clarified in a statement that this measure comes as part of the plan to implement the framework of monetary operations in the dirham.
Eligible counterparties may, in their sole discretion, obtain any of the available credit facilities and draw from the Reserve Funds of the Central Bank on an overnight basis through secured financing transactions. Or Murabaha transactions, to meet any temporary liquidity needs.
The Bank may activate the Emergency Liquidity Insurance Facility in response to any actual or expected pressures of an exceptional nature, when eligible counterparties require the Bank's reserve funds for extended periods.< /p>
Central Governor Khaled Muhammad Balama said that restructuring the scope of eligible collateral would ensure a more effective intervention by the bank to provide eligible counterparties with the liquidity they need in times of stress. or to deal with any challenges in the local market.
