Barclays to quit UAE rate panel

British bank Barclays plans to pull out of the rate-setting panel for interbank lending in the United Arab Emirates because of its involvement in the Libor scandal in Britain,three industry sources told Reuters on Sunday.

Barclays belongs to a panel of 12 banks that quote indicative interbank lending rates in UAE dirhams. The quotes are averaged to arrive at a daily range of Emirates Interbank Offered Rates,which are used to price financial instruments in the Gulfs top financial centre.

Barclays has indicated to the UAE central bank that it wants to quit the panel,and the central bank has called for a meeting on Tuesday to discuss who will replace Barclays, a source familiar with the matter said.