The five-year agreement aims to enhance trade relations, financial cooperation, and promote the use of local currencies in bilateral settlements.
The five-year agreement aims to enhance trade relations, financial cooperation, and promote the use of local currencies in bilateral settlements.
· Updated
The UAE and Egypt have agreed to renew a Dh5 billion currency swap agreement for another five years, a move intended to bolster economic development and financial cooperation between the two nations. The deal, equivalent to approximately $1.36 billion or 69 billion Egyptian pounds, was signed by the governors of the UAE Central Bank and the Central Bank of Egypt in Abu Dhabi.
This renewed agreement builds upon the initial deal established in September 2023 and aims to enhance trade relations and financial cooperation. It also seeks to promote the greater use of local currencies in bilateral settlements, thereby strengthening the financial systems of both countries.
The UAE Central Bank views currency swaps as a strategy to protect its financial system amidst regional uncertainty. This renewal follows other similar agreements, including a Dh20 billion deal with Bahrain and renewed swap deals with China and Turkey.
Egypt is a significant economic partner for the UAE, with bilateral trade reaching approximately $9.7 billion in 2025. Egyptian exports to the UAE more than doubled to $7 billion last year, while imports from the UAE were about $2.7 billion.
Officials from both countries expressed optimism about the agreement's potential to deepen economic ties, enhance financial market resilience, and create broader opportunities for cooperation in finance and investment.
FAQ
What is the value of the renewed currency swap agreement between the UAE and Egypt?
The renewed currency swap agreement between the UAE and Egypt is valued at Dh5 billion, which is equivalent to approximately $1.36 billion or 69 billion Egyptian pounds.
What are the main objectives of the currency swap agreement?
The agreement aims to enhance trade relations, financial cooperation, promote the use of local currencies in bilateral settlements, and strengthen the financial resilience of both countries.
