URGENT: Egypt, UAE renew AED 5 bln currency swap agreement for five years

The central banks of Egypt and the United Arab Emirates have renewed a currency swap agreement worth 5 billion UAE dirhams, equivalent to about 69 billion Egyptian pounds, for five years, the two banks said in a joint statement on Tuesday.

Central Bank of Egypt Governor Hassan Abdalla and UAE Central Bank Governor Khaled Mohamed Balama signed the agreement at the UAE central bank’s headquarters.

The renewal aims to support bilateral trade, strengthen financial cooperation and promote economic development in both countries, the central banks said.

Abdalla said the agreement would provide “a vital tool” to promote transactions in local currencies for commercial and financial settlements and strengthen the resilience of financial markets in both countries.

“The signing of the local currency swap agreement renewal between the CBUAE and the CBE comes as an extension of the close cooperation pathway connecting our two brotherly nations, and supports the joint efforts aimed at consolidating economic ties,” Abdalla said.

“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 added.

Balama said the renewal reflected the strength of the strategic relations between the UAE and Egypt and their commitment to developing financial and banking cooperation.

“This agreement contributes to supporting financial stability and facilitating trade and investment operations between the two countries,” Balama said.

“It represents a progressive step within our ongoing efforts to deepen the utilisation of local currencies in bilateral settlements, in line with international best practices, thereby enhancing the resilience of the financial system in both nations,” he added.