Egypt-UAE currency swap deal eases hard currency crunch: IDB chair

Egypt’s recent $1.4 billion currency swap agreement with the UAE is one of the unconventional major solutions to ease foreign currency crunch and support economic growth, said executive chairperson of the Industrial Development Bank (IDB).

Ghada El Bialy further said that the agreement would positively reflect on investment activity for both countries.

Egypt’s entry to the BRICS Group will contribute to taking similar steps through same or other procedures that promote confidence in the country’s economy, El Bialy added.

She praised the Central Bank of Egypt’s (CBE) recent move, which came as part of its efforts to use all available alternatives and non-traditional ways to handle the ongoing challenges and redress the effects of the global financial crisis on the domestic market.

On Friday, the CBE and the Central Bank of the UAE (CBUAE) have signed a local-currency swap agreement worth $1.4 billion. 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.