Ten-year term interest rate SWAPs maintained an upward movement in 2018, spiking to 4.39 percent in mid-November from 3.7 percent in early January before rebounding to 4.15 percent by the end of the year, statistics by the Central Bank of the United Arab Emirates have shown.
Interest rate swaps are offered in different major currencies with the terms of 2 to 10 years.
The 10-year Dirham-Dollar SWAP saw some fluctuations in the beginning of the year, dropping to an-all time low in February, before starting to rebound by 140 basis points by the end of the year.
The swaps involve CBUAE buying US dollars and other currencies against the dirham spot and selling them against the dirham in a forward contract at the same time.
The interest rate SWAPs soared on the second week of October, 2018, before declining by 25 basis points by the end of December.