Abu Dhabi – Mubasher: The UAE’s central bank has begun the implementation of the new Emirates Interbank Offered Rates (EIBOR) system as of Sunday, 15 April.

The fresh system is aimed at boosting currency exchange and financing industries in the UAE through more transparent, accurate, and fair interest calculation mechanism.

The novel mechanism will not depend only on calculating the average interbank interests, but will consider also deposit cost rate, Al Bayan newspaper reported citing chairman of the UAE Banks Federation Abdulaziz Al Ghurair as saying.

In March, Reuters reported that the new system would diminish the banks’ panel whose quotes are used to calculate the rates to 8 lenders from 10.