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.

RELATED TERMS
  1. Interbank Call Money Market

    An interbank call money market is a short-term money market which ...
  2. Interbank Rate

    The rate of interest charged on short-term loans made between ...
  3. Reverse Floater

    A floating-rate note in which the coupon rises when the underlying ...
  4. Emirates Investment Authority - ...

    A state-owned investment fund established in 2007 by the United ...
  5. London Interbank Mean Rate - LIMEAN

    The mid-market rate in the London Interbank market, which is ...
  6. No Dealing Desk

    A way of forex trading that provides immediate access to the ...
Related Articles
  1. Investing

    What is the Investment Corporation Of Dubai?

    The Investment Corporation of Dubai – or ICD – is a government-owned organization that manages a sovereign wealth fund for Dubai, United Arab Emirates.
  2. Investing

    The Foreign Exchange Interbank Market

    Can your forex broker offer you the most competitive pricing? Learn how the market's biggest players affect you.
  3. Insights

    Who Uses Libor Data And Why?

    LIBOR is a crucial benchmark reference rate with global economic impact.
  4. Insights

    What Is ICE LIBOR And What Is It Used For?

    In the case of ICE LIBOR, an innocent-sounding set of letters has a profound bearing on every loan you make.
  5. Personal Finance

    How Interest Rate Cuts Affect Consumers

    Traders rejoice when the Fed drops the rate, but is it good news for all? Find out here.
  6. Personal Finance

    An Introduction To LIBOR

    This influential rate is published daily in Britain, and felt all around the world.
  7. Investing

    How Do Interest Rates Affect the Stock Market?

    Interest rates can have a complicated ripple effect through financial markets. Here's what you need to know.
  8. Personal Finance

    How Interest Rates Can Go Negative

    Central banks from Europe to Japan have implemented a negative interest rate policy (NIRP) in order to stimulate economic growth.
  9. Managing Wealth

    Best Airline for Business Class: Emirates vs. Etihad vs. Qatar

    These days, business class perks often rival those in first class. Here's a look at what lures business travelers to these three airlines.
  10. Investing

    Forces Behind Interest Rates

    Interest is a cost for one party, and income for another. Regardless of the perspective, interest rates are always changing.
RELATED FAQS
  1. What is the difference between LIBID and LIBOR?

    Both LIBID and LIBOR are rates primarily used by banks in the London interbank market. The London interbank market is a wholesale ... Read Answer >>
  2. What is the difference between LIBOR, LIBID and LIMEAN?

    LIBOR, LIBID and LIMEAN are all reference rates used to benchmark short-term interest rates. The London Interbank Offered ... Read Answer >>
  3. Who determines the LIBOR rate?

    Learn about what the LIBOR rate is, how it is determined and calculated, and who determines what the LIBOR rate on a daily ... Read Answer >>
  4. How does LIBOR compare to the Federal Reserve rate as an accurate indicator?

    Explore a comparison of the predictive efficacy of the Federal Reserve's fed funds rate and the Intercontinental Exchange's ... Read Answer >>
  5. How did LIBOR come into use?

    Learn about the significance of the London Interbank Offered Rate, or LIBOR, and the history of how the daily LIBOR became ... Read Answer >>
  6. What's the difference between the prime rate and the discount rate?

    Learn more about the prime rate and the discount rate and how the Federal Reserve uses these rates in the U.S. economy. Explore ... Read Answer >>
Hot Definitions
  1. Covariance

    A measure of the degree to which returns on two risky assets move in tandem. A positive covariance means that asset returns ...
  2. Liquid Asset

    An asset that can be converted into cash quickly and with minimal impact to the price received. Liquid assets are generally ...
  3. Nostro Account

    A bank account held in a foreign country by a domestic bank, denominated in the currency of that country. Nostro accounts ...
  4. Retirement Planning

    Retirement planning is the process of determining retirement income goals and the actions and decisions necessary to achieve ...
  5. Drawdown

    The peak-to-trough decline during a specific record period of an investment, fund or commodity. A drawdown is usually quoted ...
  6. Inverse Transaction

    A transaction that can cancel out a forward contract that has the same value date.
Trading Center