Currency swap deal raises chances of Egypt’s UAE export boost: BdC chair
Egypt’s currency swap agreement with the UAE will increase the chances of the North African country boosting its exports to the Emirati market, said CEO of Banque du Caire on Sunday.
Tarek Fayed explained that the deal is a “positive initiative” to boost the investment relations between the two countries, given the fact that the volume of bilateral trade of exchange is nearly $5 billion.
The deal will positively affect Egypt’s trade balance and enhance foreign currency flows, which service the objectives of the North African country’s monetary policy, Fayed added. It supports both countries by diversifying their foreign exchange resources, easing their reliance on the dollar.
The Egyptian banker expects that there would more similar currency swap agreements with other countries buoyed by Egypt’s joining the BRICS bloc.
He also expects new cooperation agreements over the coming period, including the renewal of a currency swap agreement with China.
On Friday, the Central Bank of Egypt (CBE) and the Central Bank of the UAE (CBUAE) have signed a local-currency swap agreement. The deal will allow for the exchange of local currencies between the countries’ central banks up to 5 billion dirhams and 42 billion Egyptian pounds.
The CBE is tirelessly taking all the measures to support Egypt’s monetary stability, Fayed said.