The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Egypt (CBE) have renewed their currency swap agreement between the UAE dirham (AED) and the Egyptian pound (EGP), during a signing ceremony held at the CBUAE headquarters.
The renewed agreement has a nominal value of AED 5 billion, equivalent to approximately EGP 69 billion, and will remain in effect for five years. The renewal reflects the two countries’ continued commitment to strengthening bilateral trade, enhancing financial and banking cooperation, and supporting economic development.
The agreement was signed by H.E. Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and H.E. Hassan Abdalla, Governor of the Central Bank of Egypt.
UAE Central Bank: Agreement Supports Financial Stability
H.E. Khaled Mohamed Balama said that renewing the currency swap agreement reflects the depth of the strategic relations between the United Arab Emirates and the Arab Republic of Egypt, as well as their shared commitment to strengthening financial and banking cooperation.
He noted that the agreement will contribute to supporting financial stability and facilitating trade and investment transactions between the two countries. He also highlighted its role in advancing efforts to increase the use of local currencies in bilateral settlements, in line with international best practices, while enhancing the resilience of the financial systems of both countries.
Egypt Central Bank: Agreement Strengthens Local Currency Transactions
For his part, H.E. Hassan Abdalla said that the renewal of the local currency swap agreement between the CBUAE and the CBE represents an extension of the close cooperation between the two countries and supports joint efforts to strengthen their economic ties.
He explained that the agreement provides an important tool for promoting the use of local currencies in commercial and financial settlements, contributing to greater resilience in the financial markets of both countries.
Abdalla added that the agreement is expected to open broader opportunities for cooperation in the areas of finance and investment, supporting the economic development plans of both Egypt and the UAE.
AED 5 Billion Currency Swap to Support Economic Cooperation
The renewed UAE-Egypt currency swap agreement is valued at AED 5 billion, equivalent to EGP 69 billion, and will extend for five years.
The agreement underscores the commitment of both central banks to strengthening financial and banking cooperation, supporting bilateral trade and investment, and expanding the use of local currencies in transactions between the two countries.
Strengthening Financial Relations Between Egypt and the UAE
The renewal of the currency swap agreement highlights the continued coordination between the Central Bank of the UAE and the Central Bank of Egypt and reflects the growing financial and economic ties between the two countries.
Both sides reaffirmed their commitment to continued cooperation in the financial and banking sectors, with the aim of serving their mutual interests and supporting financial stability and sustainable economic growth in the United Arab Emirates and the Arab Republic of Egypt.
