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|15 October, 2018

New debt law lays foundations for a bond market in Dirham denomination: Cenbank Governor

It will create deeper, more resilient financial markets, benchmark the yield curve, provide more diversified sources of financing

An investor is seen at the Dubai International Financial Market, in Dubai, UAE April,16, 2018.

An investor is seen at the Dubai International Financial Market, in Dubai, UAE April,16, 2018.

REUTERS/Satish Kumar

ABU DHABI - Mubarak Rashed Al Mansouri, Governor of the Central Bank, has said that new Federal Government debt law lays the foundations for the development of a bond market in the Dirham denomination in the UAE.

In a statement, Al Mansouri said, "This is important as it will create deeper, more resilient financial markets, benchmark the yield curve, provide more diversified sources of financing, mobilise additional domestic savings and attract capital inflows."

The development of vibrant public and private bond markets - including Sukuk - will also facilitate compliance with Basel III liquidity requirements, and allow investors to balance risks in more diversified portfolios, Al Mansouri explained.

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"Overall, this is in line with the nation’s vision to press ahead with further diversification of the economy, and will underpin the UAE’s position as a growing regional and global financial centre, and further improve the UAE’s credit rating," he added

© Copyright Emirates News Agency (WAM) 2018.