UAE Central Bank to make Eibor quotes more uniform & transparent

In a bid to eliminate too much variation between Emirates interbank offered rates (Eibor) that are quoted on a daily basis by 11 different banks and to make them more uniform and transparent, the UAE Central Bank is reportedly planning reforms to Eibor quotes.

To accomplish this goal, the Central Bank has hired consultants Deloitte, which will study how individual banks calculate the Eibor and thereafter suggest how quotes could be made more uniform. However, it is not yet clear what action is likely to be taken.

Meanwhile, some bankers attributed the significant variation in the Eibor quotes of various banks on any given day to the fact that the concerned banks were not following a standard procedure to finalize the quotes.