Consistent with the global bullish sentiment, the Abu Dhabi Securities Exchange (ADX) share. It is projected that the third quarter would register. Prices of food, beverages and tobacco increased also due to the disruption in the supply chains, while textiles and clothing prices rose significantly by 11.5% Y-o-Y, driven by the increasing import prices of raw materials, needed for their production. Central Bank of the U.A.E. The downward price pressures resulted from the lost incomes, as these economies lost access to crucial export and tourism markets, and generally lacked adequate social safety nets to support demand. Natural Gas Spot Price-Dollars per Million Btu (RHS). The world growth outlook was further revised downward in the second quarter due to the impact of Covid-19pandemic, while inflation remained subdued. Source: US Energy Information Administration (EIA). The contribution of the non-oil GDP is approximately 70% of the total GDP. 3- Disclaimer. Resident deposits (89% of total deposits) increased by 1.9% Q-o-Q in Q2 owing mainly to an increase in government deposits by AED 33.9 billion and a rise in private sector deposits by AED 15.6 billion, as households became thriftier in their day-to-day expenses, therefore saving more as a precaution against rising uncertainties. The UAE interbank offered rates (Eibor) rose on Sunday following the introduction of a new way of calculating them by the Central Bank. 6 Months 0.502500. The 3-month LIBOR on USD continued to fall from 1.45% at the end of March to 0.30% at the end June, mainly due to the impact of the Fed's zero policy rate and further injection of liquidity as the Fed took additional actions to provide up to USD 2.3 trillion in loans to support the economy. During the second quarter, there was a significant decline in economic activity in the UAE due to lockdowns which started in March and continued up to May, in line with the recommendations of the World Health Organization (WHO). price index increased by 14.8% Q-o-Q, while the Dubai Financial Market (DFM) index increased by 10.4%. Balance sheet total assets less (capital and reserves + all provisions except staff benefit provisions + refinancing + subordinated borrowing/deposits). 16 Press Release: Minister of Economy reviews Interim Committee's efforts to deal with impact of Covid-19 on national economy, on 29th July 2020. Therefore, the lower contraction compared to developed economies is attributed mainly to the positive growth stemming from China, which recovered faster than expected. 1 Month EIBOR Rates The Emirates Interbank Offered Rate (EIBOR) is the benchmark interest rate, stated in UAE Dirhams, for lending between banks within the United Arab Emirates market. "Regulations Regarding Emirates Interbank Offered Rate (EIBOR) Submissions (Amended May 3, 2020)," Pages xxvii-xxx. Such rates are shared daily by the banks to central bank which publishes the same as an average rate. Updated on: 21 Jan 2021 12:15PM. According to MR Raghu, managing director, Marmore Mena Intelligence, the 3-month Eibor is at 1.5 per cent. Saudi Arabia's annual inflation rate decreased from 1.1% in Q1 to 0.5% in Q2 of 2020, before the value-added tax was tripled from 5% to 15% on the 1st of July, which is expected to boost inflation in the second half of the year. Monetary authorities in emerging economies, meanwhile, seized the opportunity of record low interest rates in international markets to implement several rate cuts in an attempt to boost demand, in tandem with unprecedented local bond purchase programs. The enhanced Targeted Economic Support Scheme (TESS) adopted by CBUAE and the economic stimulus packages announced by both local and federal governments are likely to boost the non- hydrocarbon activities, real estate prices, employment and credit growth with a positive impact on the overall sentiment, once the virus risks are under control (See Box 1 on UAE policy response). Figure 4.1.c the 10-year interest rate Swaps. Figure 1.4 Policy Rates in Selected Economies. Similarly, the ECB left its policy rates unchanged while adopting Euro 1,350 billion pandemic emergency purchase program (PEPP), aiming at lowering the borrowing costs for business and increasing lending in the euro area. Annual rent and average Dubai residential unit sale prices are provided by DLD. 1.1.a: Real GDP Growth in Selected Country Groups, Table. Overall GDP growth for the year 2020 is expected to contract by 5.2%, according to CBUAE forecasts.2,3, The non-hydrocarbon GDP is estimated to have declined by 9.3% Y-o-Y in the second quarter, after a drop of 2.7% in the previuos quarter. Distributed by Public, unedited and unaltered, on 23 September 2020 15:29:02 UTC. Nonetheless, the digitization of financial services led national banks to rely less on branches, whose number decreased from 640 at the end of Q1 to 611 at the end of Q2 2020, while the number of bank Staff decreased by 415 to reach 35,423 employees. However, in Q2 2020, the strong appreciation of the NEER led to the appreciation of the REER even though the UAE inflation remained negative, during this period. In this section, all June 2020 data are preliminary and subject to revision. In the UAE, 3-month EIBOR decreased from 1.62% at the end of March to 0.76% at the end of June, in line with the decline in the USD LIBOR. Exchange Rates US Dollar. 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