UAE To Launch Repo Facility For Banks

The central bank of UAE is launching a repo rate facility for its banks, Bloomberg reports. The repurchase facility will accept Islamic certificates of deposit as collateral against cash to provide a source of liquidity to banks.

Participating banks will have to enter a collateralized murabahah facility deal. The Shariah-compliant facility will allow banks to use their excessive liquidity to invest in dirham instruments.

Click here for the story from Bloomberg.