The UAE Central Bank has approved Dirham/US Dollar swap facilities for banks operating in the country as part of its efforts to "provide further services to the banking sector" to address the global credit crisis. The approval was made yesterday evening during a board meeting presided over by the board chairman, Khalil Mohammed Sharif Folazi.
The board has cut out a number of procedures for the granting of those facilities, which can be accessed by all banks operating in the country, irrespective of the bank having or not having shortfall in its Dirham net position.
According to the procedure the Central Bank will buy US Dollars against the Dirham spot and sell Dollars against the Dirham in a forward contract, at the same time, with the aim of "providing further services to the banking sector". It said swaps will be available for time period of one week, one month, two months, three months, six months, nine months and twelve months.
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