ABU DHABI 27 November 2017: The interest rates charged by Emirates Inter-Bank Offered Rate (Eibor), have continued to increase by 1 per cent to 5.9 per cent since the beginning of November, after the Central Bank raised its interest rates during the first 10 months of 2017 following a similar move by the US Federal Reserve.
The highest Eibor hike was recorded by UAE banks for interbank transactions on a yearly basis, according to CB statistics.
According to market analysts surveyed by Wam, the continual increase in Eibor has encouraged banks to invest their surplus funds in this key investment vehicle in order to secure largest possible gains.
In more detail, the one-year Eibor has increased since the beginning of this month from 221 points to 234 points today, a growth of around, 5.9 per cent, while the six-month Eibor jumped from 181 points to 189 points, a hike of 4.4 per cent.
The three-month Eibor likewise grew by 4.4 per cent from 157 points in early November to 164 today, while one-month rates were up 1.5 percent from 131 to 133 points.
The Central Bank calculates Eibor according to the calculation of average interest rates that are offered daily by 10 selected banks -Eibor panel has been reduced from 11 to 10 banks starting from 29th March 2017- that operate in the domestic market, excluding the two highest prices and the two lowest prices from the approved list of banks.