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Wed 24 Dec 2008 05:28 PM

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UAE central bank announces move on currency swaps

Bank officials say they will provide dirham-dollar swap facilities to banks.

The UAE central bank said on Wednesday it would provide UAE dirham-US dollar swap facilities to banks to further support the banking system.

"These facilities shall be provided to all banks operating in the UAE, regardless of whether or not they have a shortfall in their dirham net positions," the central bank said in a statement after a board meeting.

The swaps would involve the central bank buying US dollars against the dirham spot and selling dollars against the dirham in a forward contract at the same time, it said.

Swaps would be available for time periods of one week, one month, two months, three months, six months, nine months and 12 months, the central bank said. (Reuters)

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