ABU DHABI - The 10-year swap rate on the Dirham has steadied at 1.6 percent by the end of H1-2020, only rising to 1.9 percent during the first week of June before falling against to 1.6 pct 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 percent by the end of March to 0.76 percent 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.
© Copyright Emirates News Agency (WAM) 2020.