Central Bank launches DONIA overnight funding rate index
The Central Bank of the UAE (CBUAE) is introducing DONIA, a new benchmark index based on actual overnight interbank funding transactions to replace existing reference rates. The index affects banks, financial institutions, and any entity using overnight funding benchmarks in UAE contracts.
The analysis — automated & source-checked
- Applies to
- Financial services · UAE
- What to do
- Financial institutions must review contracts referencing overnight rates, coordinate with counterparties on transition arrangements, and ensure systems can accommodate DONIA reporting and calculation. Monitor CBUAE communications for implementation deadlines and technical specifications.
DONIA (Dirham Overnight Index Average) is a market-based overnight funding rate derived from actual transactions reported by participating banks. It is designed to improve transparency and reduce reliance on estimated or less liquid reference rates. The CBUAE will provide implementation guidance and a transition timeline for affected financial institutions.
Source
“The Central Bank of the UAE (CBUAE) is introducing DONIA, a new benchmark index based on actual overnight interbank funding transactions to replace existing reference rates.”
— Central Bank of UAE, 10 Jun 2026
Source: Central Bank of UAE — official 10 Jun 2026 Read the original ↗ More from Central Bank of UAE →
Quick answers
What do I need to do?
Financial institutions must review contracts referencing overnight rates, coordinate with counterparties on transition arrangements, and ensure systems can accommodate DONIA reporting and calculation. Monitor CBUAE communications for implementation deadlines and technical specifications.
Who issued this?
Central Bank of UAE (UAE).
When was it announced?
10 Jun 2026.
Where can I read the original?
Read the original at Central Bank of UAE: https://www.centralbank.ae/en/news-and-publications/news-and-insights/press-release/cbuae-to-launch-a-new-index-for-actual-overnight-funding-transactions-named-donia/
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