UAE makes dollar loans following supply shortage

The Central Bank of the United Arab Emirates lent dollars on Monday 10 March after expectations that the authorities would revalue the dirham's peg against the greenback led to a currency shortfall. Media reports have also said that the central bank is looking at abandoning the peg altogether.

The central bank said on Monday that it would lend up to $200 million per day to banks. Central bank certificates of deposit are the only eligible collateral for the loans. The cost of borrowing was 3.2