UAE dollar-peg in practice
Posted by Ivo Cerckel on May 22nd, 2009
exorbitant interest rates on personal loans
United Arab Emirates Central Bank Governor Sultan Bin Nasser Al Suwaidi said on Thursday that there will be no change in the UAE monetary policy and that the dirham will remain pegged to the dollar. (1)
Despite the UAE Central Bank thus more or less following interest rate cuts by the US central bank, the Federal Reserve, the UAE Central Bank is considering changing interest rates on personal loans, upwards I suppose, thereby leaving many potential borrowers facing huge costs relating to their borrowing. (2)
As a result of the credit crunch many people now find it difficult to get affordable unsecured personal loans, with banks having to increase their rates to make up for the losses incurred as a result of higher inter-bank lending costs.
That’s the result of the dollar peg …
Ivo Cerckel
ivocerckel@siquijor.ws
NOTES
(1)
UAE has most suitable financial infrastructure in region: Al Mansouri
Gulf News
Friday, May 22, 2009
http://www.zawya.com/Story.cfm/sidGN_22052009_10315854/UAE%20has%20most%20suitable%20financial%20infrastructure%20in%20region%3A%20Al%20Mansouri
(2)
UAE: Central Bank mulls changing interest rates on personal loans
Emirates Business 24/7
22 May 2009
http://ae.zawya.com/story.cfm/sidZAWYA20090522064629
No related posts.
May 27th, 2009 at 07:20
I was wrong.
I will be wrong again.
UAE banks to cut interest rates on personal loans – 26May09 (0:35)
UAE banks have decided to lower interest rates on personal loans to 7%.
http://www.zawya.com/video/default.cfm/sidVID20090526112446
May 27th, 2009 at 08:19
[...] UAE dollar-peg in practice [...]