The Central Bank of the UAE and the Central Bank of Egypt have renewed a currency swap agreement between the UAE dirham and the Egyptian pound. The agreement, worth AED 5bn or EGP 69bn, extends for five years. This renewal reflects the ongoing commitment of both parties to enhance bilateral trade, consolidate financial cooperation, and support economic development in both countries.
The agreement was signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Hassan Abdalla, Governor of the Central Bank of Egypt. According to Balama, the renewal reflects the depth of strategic relations between the two countries. He also stated that the agreement contributes to supporting financial stability and facilitating trade and investment operations between the UAE and Egypt.
The Egyptian Central Bank Governor, Hassan Abdalla, described the renewal as an extension of close cooperation supporting joint efforts to consolidate economic ties. Abdalla emphasized that the agreement provides an important tool to enhance trading in local currencies for commercial and financial settlements. This, in turn, strengthens the resilience of financial markets in both countries.
The renewed currency swap agreement is expected to open wider horizons for cooperation in finance and investment between the UAE and Egypt. Both parties have affirmed their keenness to continue joint work to enhance financial and banking cooperation. Their goal is to achieve mutual interests and support economic stability and growth in both countries.
The currency swap agreement allows for the use of local currencies in bilateral settlements. This move is in line with best international practices and aims to enhance the resilience of the financial system in both countries. By using local currencies, the UAE and Egypt can reduce their reliance on foreign currencies and promote financial stability.
The renewal of the currency swap agreement is a significant development in the economic relationship between the UAE and Egypt. It demonstrates the commitment of both countries to strengthening their economic ties and promoting cooperation in the financial sector. The agreement is expected to have a positive impact on trade and investment between the two countries.
The UAE and Egypt have a long history of economic cooperation, and the renewed currency swap agreement is a testament to this cooperation. The agreement is expected to contribute to the growth and development of both countries and promote economic stability in the region. Both countries are looking forward to continuing their joint work to enhance financial and banking cooperation.
Key points
- The UAE and Egypt have renewed a currency swap agreement worth AED 5bn to enhance bilateral trade and financial cooperation.
- The agreement extends for five years and reflects the ongoing commitment of both parties to support economic development in both countries.
- The renewal is expected to open wider horizons for cooperation in finance and investment between the UAE and Egypt.
