As of April 21, within the new framework for cash operations in dirhams

"Central" launches "day-to-day liquidity facilities"

Khaled Mohammed Al-Blaa: “The cash bills program and the existence of the Islamic Deposit Certificate Program have enabled us to develop these innovative facilities.

The Central Bank announced yesterday that, as of April 21, it will introduce new liquidity management facilities, called "one-day liquidity facilities", as part of the plan to implement the new framework for cash operations in dirhams.

"The Central Bank" stated in a statement that these facilities aim to provide eligible counterparties - participants in the "Emirates Fund Transfer System" to obtain financing in UAE dirhams from the Central Bank within one day, in order to achieve settlement of payments on a real time basis.

He explained that in order to obtain funds from the Central Bank within one day, participants in the Emirates Fund Transfer System must present qualified guarantees, in accordance with the requirements stipulated in the terms and conditions of the new facilities.

The "central" added that liquidity facilities will be offered within one day without costs, in order to motivate eligible counterparties to repay the borrowed funds by the deadlines set at the end of each business day.

"The launch of the cash bills program earlier this year, along with the existing Islamic certificate of deposit program, has enabled us to develop these innovative facilities," said the governor of the Central Bank, Khaled Mohamed Balama.

He added: “We are confident that the financial market infrastructure that has been employed in these facilities will enable licensed financial institutions not only to reduce liquidity risks during one day in the event of a timing mismatch between daily incoming and outgoing flows, but will also help increase Efficient payments through the Emirates Money Transfer System.

Offering the facilities without costs to stimulate the repayment of the borrowed funds by the specified deadlines at the end of each working day.

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