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Sunday 03 March 2024


Sunday 03 March 2024

CBUAE: "FATF" Announcement of UAE Completion of the Requirements is a Testament of Concerted National Efforts to Combat Money Laundering and Terrorism Financing

Press Release

Tuesday 06 February 2024


Tuesday 06 February 2024

CBUAE revokes the licence and registration of Smart and Secure Insurance Agent

Press Release

Monday 05 February 2024


Monday 05 February 2024

CBUAE launches the fifth cohort of the Executive Certificate for Risk-Based Supervision Professionals

Press Release

Wednesday 31 January 2024


Wednesday 31 January 2024

CBUAE Maintains the Base Rate at 5.40%

Press Release

Tuesday 30 January 2024


Tuesday 30 January 2024

CBUAE imposes a financial sanction of AED 1.2 million on an insurance company operating in the UAE

Press Release

Monday 29 January 2024


Monday 29 January 2024

Mansour bin Zayed witnesses UAE Central Bank's Golden Jubilee

Press Release

Tuesday 16 January 2024


Tuesday 16 January 2024

Summary Report - Monetary Banking Developments - November 2023

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Dirham Monetary Framework

Framework Pillars

  • 1

    Pillar One:

    Standing Facilities and Base Rate

    On-demand facilities, which address both overnight and intraday money market conditions, are divided into three categories: overnight deposit, intraday liquidity, and overnight lending. The rate applicable to the overnight deposit facility, the Base Rate, is the prevailing monetary policy rate in the UAE.

  • 2

    Pillar Two:

    Open Market Operations

    Open Market Operations (OMOs) play an important role in the implementation of monetary policy by:

    • -  Managing liquidity in the domestic market.
    • -  Steering short-term market interest rates to smooth the effects on interest rates caused by unexpected liquidity fluctuations. This helps minimise the gap between the Central Bank of the UAE's Base Rate and overnight interbank rates, such as DONIA and overnight EIBOR.

  • 3

    Pillar Three :

    Liquidity Insurance

    Liquidity insurance refers to liquidity assistance that could be provided during actual or prospective stress. The circumstances could be market-wide or idiosyncratic, where Deposit-Taking Licensed Financial Institutions need additional liquidity at extended terms, to be executed on a contingent basis and at the CBUAE’s discretion.

  • 4

    Pillar Four:

    Statutory Reserve Requirements

    Statutory reserves are used primarily for liquidity management purposes, such as drawing against reserves, and to provide protection against both liquidity and solvency risks.

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Last updated on: Friday 05 August 2022

Total visitors 3273