Egypt and the UAE renew their AED 5 billion currency swap agreement for five years to strengthen financial cooperation, facilitate trade and investment, and promote local-currency settlements.
The Central Bank of Egypt (CBE) and the Central Bank of the United Arab Emirates (CBUAE) have renewed their bilateral currency swap agreement, valued at AED 5 billion, or around EGP 69 billion, for another five years. The agreement is aimed at strengthening financial cooperation, facilitating bilateral trade and investment, and promoting the use of local currencies in settlements.
The agreement was signed at the CBUAE headquarters by Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Hassan Abdalla, Governor of the Central Bank of Egypt. The renewal builds on the financial cooperation between the two central banks and their efforts to deepen economic ties.
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Under the arrangement, the two central banks can exchange UAE dirhams and Egyptian pounds, providing a mechanism for commercial and financial settlements in the currencies of the two countries. The move is intended to support cross-border transactions and reduce reliance on third currencies for eligible bilateral settlements.
Balama said the renewed agreement supports financial stability and facilitates trade and investment flows between the UAE and Egypt. He also highlighted its role in advancing the use of local currencies in bilateral settlements and strengthening the resilience of the financial systems in both countries.
Abdalla said the renewal extends the close cooperation between Egypt and the UAE and provides an important mechanism for promoting local-currency transactions for trade and financial settlements. He added that the agreement could create broader opportunities for cooperation in finance and investment while supporting the economic development objectives of both countries.
The AED 5 billion facility is equivalent to approximately $1.36 billion. The renewed agreement comes as bilateral economic ties continue to expand. Trade between the UAE and Egypt reached about $9.68 billion in 2025, according to figures cited by Arab News.
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Both central banks reaffirmed their commitment to deepening financial and banking cooperation, supporting financial stability, and promoting economic growth. The renewed currency swap provides an additional framework for strengthening trade, investment, and financial transactions between Egypt and the UAE.