The Central Bank of the UAE (CBUAE) and the Central Bank of Egypt (CBE) have renewed their currency swap agreement, valued at AED5 billion ($1.36 billion), to enhance bilateral trade and financial cooperation. The agreement, which was signed at the CBUAE headquarters, is set to remain in effect for five years, reflecting the commitment of both nations to strengthen their economic ties, as reported by Economy Middle East.
Facilitating Trade and Investment
The currency swap agreement aims to facilitate trade and investment flows between the UAE and Egypt. Khaled Mohamed Balama, Governor of the CBUAE, highlighted that the renewal signifies the robust strategic relationship between the two countries and their mutual commitment to advancing financial cooperation.
Balama noted that the agreement not only contributes to financial stability but also promotes the use of local currencies in bilateral transactions. This initiative aligns with international best practices and aims to bolster the resilience of the financial systems in both nations.
Strengthening Economic Ties
Hassan Abdalla, Governor of the CBE, emphasized that the renewed agreement builds on the close cooperation between the UAE and Egypt. He stated that it supports joint efforts to deepen economic ties and provides a vital mechanism for enhancing the use of local currencies in trade and financial settlements.
Abdalla expressed optimism that the agreement would create broader opportunities for cooperation in finance and investment, ultimately contributing to the economic development objectives of both countries. Both central banks reaffirmed their dedication to continuing collaborative efforts to enhance financial and banking cooperation, which is essential for mutual interests and economic growth.
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