OMM Redaksiyası
The central banks of the United Arab Emirates (UAE) and Egypt have renewed a currency swap agreement between their national currencies, the institutions said on Tuesday.
The deal has a nominal value of 5 billion Emirati dirhams, equivalent to 69 billion Egyptian pounds ($1.36 billion). It was signed by UAE Central Bank Governor Khaled Balama and Central Bank of Egypt Governor Hassan Abdalla.
Agreement aims to support trade and investment
The renewal is intended to promote bilateral trade, strengthen financial cooperation and support economic development in both countries.
“This agreement contributes to supporting financial stability and facilitating trade and investment operations between the two countries,” Balama said. He added that it would help expand the use of local currencies in bilateral settlements and strengthen the resilience of both financial systems.
Abdalla described the renewal as a continuation of close cooperation aimed at strengthening economic ties.
“The agreement provides a vital tool to promote transactions in local currencies for commercial and financial settlements, enhancing the resilience of financial markets in both countries,” he said. Abdalla added that the deal could open wider opportunities for cooperation in finance and investment.
Coordination over Banque Misr branches
The UAE and Egyptian central banks issued a joint statement on Aug. 30 pledging to cooperate and coordinate on the resumption of all operations at Banque Misr’s branches in the UAE.
The statement followed a decision by the US Treasury Department on Aug. 28 to suspend dollar transactions at the bank’s Emirati branches over alleged ties with Iran.
