The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Egypt (CBE) have renewed their dirham-Egyptian pound currency swap agreement, extending a financial arrangement worth AED5 billion (EGP69 billion) for another five years.
The renewal was formalised at a signing ceremony held at the CBUAE's headquarters. CBUAE Governor Khaled Mohamed Balama and CBE Governor Hassan Abdalla signed the agreement on behalf of their institutions.
The swap allows the two countries to settle trade and financial transactions in their own currencies, a step both central banks say will support bilateral trade, encourage investment flows and strengthen financial stability.
Balama said the renewal reflects the depth of the strategic relationship between the two nations and their shared commitment to closer financial and banking cooperation. He added that the agreement marks a significant step in promoting the use of local currencies in bilateral settlements, in line with international best practices, and helps build resilience in both financial systems.
Abdalla described the agreement as an important mechanism for expanding the use of local currencies in trade and financial settlements. He said it builds on the close cooperation between the two brotherly countries and expressed hope that it would open broader opportunities in finance and investment, in support of economic development goals on both sides.
Both central banks reaffirmed their commitment to deepening financial and banking cooperation in support of their mutual interests, financial stability and economic growth.
News Source: Emirates News Agency
