DEFINITION of 'Emirates Interbank Offered Rate - EIBOR'

The interest rate charged by banks in the United Arab Emirates for interbank transactions. In most cases, EIBOR is the reference rate most commonly used by borrowers and lenders to conduct financial transactions in Dubai and the surrounding Emirates.

BREAKING DOWN 'Emirates Interbank Offered Rate - EIBOR'

Similar to the London Interbank Offered Rate (LIBOR), EIBOR futures contracts are available for trade and there are various EIBOR offered rates depending on the life of the loan.

Many Islamic banks use EIBOR rates as benchmarks for determining the rental rates for special leasing agreements called Ijara.

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  1. What is the difference between LIBID and LIBOR?

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    LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered ... Read Answer >>
  3. What are the differences between the Federal Funds Rate and LIBOR?

    Learn the key differences between the federal funds rate and the London Interbank Offered Rate, including currency denomination ... Read Answer >>
  4. Who determines the LIBOR rate?

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  5. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

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  6. How did LIBOR come into use?

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