Central banks of Egypt, UAE ink bilateral currency swap Agreement

The Central bank of Egypt (CBE) and that of the United Arab Emirates (CBUAE) signed Thursday September 28 a Bilateral Currency Swap Agreement between the UAE Dirham (AED) and the Egyptian Pound (EGP).

CBE Governor Hassan Abdullah and his UAE counterpart Khaled Mohamed Balama penned the deal that allows the exchange of local currencies between the two Central banks with a nominal size of up to AED 5 billion and EGP 42 billion.

“This deal promotes cooperation between the Egyptian and Emirati financial sectors in their respective currencies,” Hassan Abdullah commented.

“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 impact the trade, investment and financial sectors, and enhance financial stability,” the Emirati official on his part said.

The Egyptian State says the deal comes part of the government’s efforts to meet a shortage in foreign currency.

In July, Egypt’s net foreign reserves (NIRs) increased slightly by $146 million to $34.806 billion, up from $34.660 billion in June, Egyptian State-run news media Aharam Online reports. The trade between the two countries grew by 6.5 percent to register $4.6 billion during the first 11 months of 2022, up from $4.3 billion in the same period in 2021.