The Central Bank of the UAE (CBUAE) and the Central Bank of Egypt (CBE) have formalized a Bilateral Currency Swap Agreement aimed at enhancing economic and financial cooperation between the two nations. The agreement facilitates the exchange of local currencies, the UAE Dirham (AED), and the Egyptian Pound (EGP), and holds the potential to strengthen trade, investment, and financial stability in both countries.
The agreement, officially signed by Shaled Mohamed Balama, Governor of the Central Bank of the UAE, and His Excellency Hassan Abdalla, Governor of the Central Bank of Egypt, allows for the exchange of local currencies between the two central banks. This exchange has a nominal size of up to AED 5 billion and EGP 42 billion, demonstrating the commitment of both nations to deepen their financial ties.
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Khaled Mohamed Balama, Governor of CBUAE, emphasized the significance of this agreement in fostering cooperation between the UAE and Egypt. He stated, “The Bilateral Currency Swap Agreement between the UAE and Egypt reflects the strong relationship between the two countries and serves as an opportunity to promote cooperation and develop our respective economic and financial markets. In line with the efforts of the UAE and Egypt’s leadership to collaborate more broadly across multiple areas, the CBUAE is keen to deepen its cooperation with the CBE to achieve common interests, positively impacting the trade, investment, and financial sectors, and enhancing financial stability.”
Hassan Abdalla, Governor of CBE, expressed confidence in the agreement’s potential to strengthen financial sectors in both countries. He said, “In support of the continued robust relations between the UAE and Egypt, the Central Bank of the UAE and the Central Bank of Egypt have entered into a Bilateral Currency Swap Agreement, which I am confident will bolster cooperation between both financial sectors in their respective currencies.”
This bilateral currency swap agreement underscores the commitment of the UAE and Egypt to furthering economic ties and mutual prosperity. By facilitating the exchange of their local currencies, both nations aim to enhance financial stability, encourage investment, and promote economic growth.
The agreement reflects a broader trend of collaboration between countries in the Middle East and North Africa region, highlighting the importance of fostering strong financial relationships to drive economic development and stability.
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