The Central Bank of the UAE has extended the repo rate of one percent to one month - which currently is for one week - to generate more liquidity at a lesser cost.

The eligibility requirement for transactions of Certificates of Deposits of 14 days, issued by the central bank and owned by commercial bank, has also been amended by the bank.

According to the Senior Executive Director of Treasury Department, these amendments will ensure greater liquidity to the banks at a lesser cost.

Emirates Interbank Offered Rates (EIBOR), which was set up recently by the Central Bank, has already eased the current market rates. The bank has set up EIBOR panel consisting of 11 banks.

Recently, the Board of Directors of the Central Bank of the UAE also reviewed the report of the senior Executive Director of Banking Supervision and Examination Department, about the banking indicators.