The central bank of the United Arab Emirates will introduce a mechanism on April 15 to let the country's banks borrow funds from it overnight to help with liquidity management.

The Interim Marginal Lending Facility (IMLF) will allow lenders in the Gulf Arab state to use certain assets as collateral to swap for one-day loans, according to an April 3 letter to banks which was published on the central bank's website on Tuesday.

A sharia-compliant version of the IMLF for Islamic banks in the UAE will be launched "in the coming weeks", the letter added. – Reuters