Egypt-UAE currency swap deal leads to better use of hard currency: United Bank CEO

Egypt’s recent $1.4 billion currency swap agreement with the UAE will help reduce demand for the dollar and increase reliance in the pound currency for trade, said chief executive of the United Bank on Sunday.

“This move can lead to increased dollar liquidity at banks from the interbank market, conserving hard currency by prioritising its use for the imports of essential goods, manufacturing materials, and medicines.”  United Bank’s Ashraf Al Kady further said.

On Friday, the Central Bank of Egypt (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.

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