UAE, Egypt Lock In USD1.36B Currency Swap Agreement
Khaled Balama, governor of the UAE Central Bank (CBUAE), and Hassan Abdalla, governor of the Central Bank of Egypt (CBE), signed the renewal. The extension is intended to stimulate trade between the two countries, strengthen financial cooperation and advance economic development.
Balama framed the deal as a step toward wider use of national currencies in cross-border payments.
“This agreement contributes to supporting financial stability, and facilitating trade and investment operations between the two countries. It represents a progressive step within our ongoing efforts to deepen the utilization of local currencies in bilateral settlements, in line with international best practices, thereby enhancing the resilience of the financial system in both nations,” said Balama.
Abdalla characterized the renewal as a continuation of the close cooperation between the two institutions, aimed at reinforcing economic ties.
“The agreement provides a vital tool to promote transactions in local currencies for commercial and financial settlements, enhancing the resilience of financial markets in both countries. We look forward to this step unlocking wider horizons for cooperation in the fields of finance and investment, in a way that supports economic development plans in both nations,” he said.
The announcement follows a recent episode of financial coordination between the two central banks. On Aug. 30, the UAE and Egyptian central banks issued a joint statement pledging to cooperate on resuming all operations at Banque Misr's UAE branches. That came after the US Treasury Department moved on Aug. 28 to suspend dollar transactions at the bank's Emirati branches over alleged ties with Iran.
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