The Central Bank of the UAE and the Central Bank of the Republic of Türkiye have signed a currency swap deal and two memorandums of understanding to boost financial cooperation and expand the use of local currencies in cross-border trade.
The swap agreement, valued at AED 18 billion and TRY 198 billion, is designed to enhance bilateral trade and provide liquidity in both currencies, making transactions more efficient for businesses and financial markets.
Alongside the swap, the first MoU establishes a framework to promote the use of the dirham and lira in settling cross-border transactions. The plan aims to deepen the foreign exchange market, facilitate trade and remittances, and encourage investment flows while strengthening financial stability.
The second MoU focuses on linking payment and messaging systems between the two countries. It includes integrating the UAE’s instant payment platform Aani with Türkiye’s FAST system, supporting the use of domestic payment cards, and exploring collaboration in central bank digital currencies.
CBUAE Governor Khaled Mohamed Balama said the agreements underscore both countries’ commitment to advancing strategic financial partnerships, highlighting the benefits of local currency use in lowering costs and improving settlement times.
CBRT Governor Fatih Karahan noted that the deals pave the way for new opportunities in trade, investment, and financial technology, supporting broader economic cooperation and sustainable growth.
With these steps, the UAE and Türkiye move closer to deepening their economic ties while modernizing cross-border payment systems and expanding local currency use in international commerce.
News Source: Emirates News Agency
