The 10-year swap rate on the Dirham has steadied at 1.6 per cent by the end of H1-2020, only rising to 1.9 per cent during the first week of June before falling against to 1.6 per cent by the end of the month, according to the figures of the Central Bank of the United Arab Emirates.
As regards the spread of the 10-year Dirham swap rate vs. USD, it was fluctuating during Q2 2020. At the beginning of April, the spread was at 110 basis points, increasing to 131 basis points at the end of the month before decreasing to 102 basis points by the end of the same quarter. The quarterly average rose from 92 basis points in the maiden quarter to 113 at the second.
The London Interbank Offered Rate (LIBOR) 3-month rates for the Dirham and key other currencies dropped from 1.62 per cent by the end of March to 0.76 per cent by the end of June in tandem with the drop in the LIBOR on the US dollar. The 10-year Dirham-Dollar SWAP was on the decline by the end of 2019, dropping to 95 basis points, according to CBUAE figures.
The Ministry of Finance has announced recently the launch of the Third Generation e-Dirham cards (e-Dirham G3), in cooperation with new government entities and national banks across the UAE.
According to the Ministry, these new cards facilitate the collection of state fees and revenues, make transactions more convenient, and give customers easier and safer e-payment methods when paying government fees.
The new phase of the system included the Ministry of Economy; the Ministry of Finance; Emirates Development Bank; Department of Finance, Ajman; Dubai Chamber of Commerce and Industry, and Zayed University.
Also included were several national banks, namely the Commercial Bank of Dubai, First Abu Dhabi Bank; Abu Dhabi Islamic Bank; Ras Al Khaimah Bank and National Bank of Fujairah. Younis Haji Al Khoori, Under-Secretary of MoF, said, “Since its launch, the e-Dirham system improved rapidly, embodying the best international practices in Fintech and digital payments, and providing customers with unprecedented flexibility and security, in line with the UAE Vision 2021’s objectives.”
WAM