Egypt, UAE central banks sign currency swap deal

The central banks of Egypt and the UAE have on Thursday signed a bilateral currency swap agreement.

The agreement will see the exchange of the UAE Dirham and the Egyptian pound between the Central Bank of Egypt (CBE) and the Central Bank of the UAE (CBUAE) with a nominal size of up to 5 billion dirhams and 42 billion pounds.

CBE Governor Hassan Abdalla has signed the agreement with CBUAE Governor Khaled Mohamed Balama.

“In support of the continued robust relations between the UAE and Egypt, the Central Bank of the UAE and the Central Bank of Egypt have entered into a Bilateral Currency Swap Agreement, which I am confident will bolster cooperation between both financial sectors in their respective currencies.” CBE Governor Abdalla said in a joint statement.

Meanwhile, CBUAE Governor Balama said the bilateral currency swap agreement between the UAE and Egypt reflects “the strong relationship between the two countries and serves as an opportunity to promote cooperation and develop our respective economic and financial markets.”

“In line with the efforts of the UAE and Egypt’s leadership to collaborate more broadly across multiple areas, the CBUAE is keen to deepen its cooperation with the CBE to achieve common interests, positively impact the trade, investment and financial sectors, and enhance financial stability.”