The Central Bank of Egypt (CBE) and the Central Bank of the United Arab Emirates (CBUAE) have renewed their currency swap agreement, with a nominal value of AED 5 billion, equivalent to EGP 69 billion. The agreement was signed on September 29, 2026, at the CBUAE headquarters. This renewal aims to enhance bilateral trade, strengthen financial cooperation, and support economic development in both countries. The deal was signed by Khaled Mohamed Balama, Governor of the CBUAE, and Hassan Abdullah, Governor of the CBE.
The renewed currency swap agreement has a duration of five years and reflects the commitment of both sides to deepening financial and banking cooperation. According to Balama, the agreement embodies the shared commitment to developing financial and banking cooperation and contributes to supporting financial stability and facilitating trade and investment operations between the two countries. The deal also represents a progressive step in utilizing local currencies in bilateral settlements, in line with international best practices.
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. Abdullah emphasized that the signing of the local currency swap agreement renewal comes as an extension of the close cooperation pathway connecting the two nations. He expressed hope that this step will unlock wider horizons for cooperation in the fields of finance and investment, supporting economic development plans in both nations.
The renewal of the currency swap agreement reflects the depth and robustness of the strategic relations binding the United Arab Emirates and Egypt. Both parties reaffirmed their commitment to continuing joint efforts to enhance financial and banking cooperation, achieving mutual interests, and supporting financial stability and economic growth in both countries. This cooperation is expected to have a positive impact on the economic ties between the two nations.
The use of local currencies in bilateral settlements is in line with international best practices and aims to enhance the resilience of the financial system in both nations. By promoting transactions in local currencies, the agreement is expected to reduce the reliance on foreign currencies and increase the efficiency of trade and investment operations between Egypt and the UAE.
The Central Bank of Egypt and the Central Bank of the United Arab Emirates have been strengthening their cooperation in recent years, with a focus on enhancing financial stability and promoting economic growth. The renewed currency swap agreement is a significant step in this direction, demonstrating the commitment of both central banks to deepening their cooperation and supporting economic development in both countries.
The agreement is expected to have a positive impact on the Egyptian economy, which has been working to strengthen its financial stability and promote economic growth. The use of local currencies in bilateral settlements is also expected to increase the efficiency of trade and investment operations between Egypt and the UAE, contributing to the growth of economic ties between the two nations.
Key points
- The renewed currency swap agreement has a nominal value of AED 5 billion, equivalent to EGP 69 billion, and a duration of five years.
- The agreement aims to enhance bilateral trade, strengthen financial cooperation, and support economic development in both countries.
- The deal was signed by Khaled Mohamed Balama, Governor of the CBUAE, and Hassan Abdullah, Governor of the CBE, on September 29, 2026.
