KUWAITI DINAR RATES FIRM, AID WINDOW OPEN
Interest rates on Kuwaiti dinar deposits
held firm in scattered trading despite a Central Bank decision
to revive limited funding lines, dealers said.
    The Central Bank, which last Tuesday shut a daily aid
window through which it lent funds of up to one year, reopened
the facility for three month money, which was available at
seven pct, they said.
    It offered one month funds at seven pct through swap
facilities, dealers said.
    Today's Central Bank action, combined with sales of dollars
by some banks, helped ease a recent credit squeeze engineered
by the monetary authority to stem a rush for the U.S. Currency
arising from attractive U.S. Interest rates and Gulf tension,
dealers said.
    However, as one dealer noted: "The market is still
unsettled."
    Overnight funds, bid at 20 pct at the outset of business,
traded up to 30 pct before easing as liquidity dragged offers
down to 10 pct by the close. Tomorrow-next, for which buy/sell
quotes started at 30, 20 pct, ended at 14, eight.
    Spot-next was indicated at 8-1/2, seven after opening bids
of 10. Dealers quoted one-week at eight, seven against an early
9-1/2, 7-1/2.
    One month rates were at the same level after trade at eight
then 8-1/2. Dealers quoted three months at seven, 6-3/4 pct and
six-month to one year funds at seven, six pct. They reported
offshore offers of overnight at 10, tomorrow-next at eight and
one year at 6-1/2 pct towards the close.
     The Central Bank fixed its dinar exchange rate steady at
0.27933/67 to the dollar, against yesterday's 0.27939/73. The
spot dinar was 0.27930/40.
 REUTER
