UAE and Egypt renew Dh5bn currency swap deal to enhance economic development

The United Arab Emirates and Egypt have extended their five-year, Dh5 billion currency swap agreement to further strengthen their economic collaboration. This refreshed deal, equivalent to 69 billion Egyptian pounds, was officially signed by the governors of the UAE Central Bank and the Central Bank of Egypt in Abu Dhabi on Tuesday. The agreement, which was previously established in September 2023, aims to enhance trade relations and financial cooperation between the two nations.

CBUAE Governor Khaled Balama stated that the renewed agreement underscores the shared commitment of both countries to financial stability and the facilitation of trade and investment flows. It also represents a significant step forward in promoting the use of local currencies in bilateral settlements, aligning with international best practices and bolstering the resilience of the financial systems in both nations.

The UAE, the Arab world's second-largest economy, has been implementing measures to safeguard its financial system amidst growing regional uncertainties. Currency swaps, such as this one, are integral to this strategy. The UAE has also inked similar agreements with Bahrain, China, and Turkey in recent years, highlighting its commitment to regional financial stability.

Egypt, the Arab world's most populous nation and a key economic partner of the UAE, has witnessed substantial growth in bilateral trade. In 2025, trade between the two countries reached approximately $9.7 billion, marking a 62% year-on-year increase. Egypt's exports to the UAE more than doubled to $7 billion, while imports from the UAE totaled around $2.7 billion, according to the UAE Ministry of Foreign Affairs.

Egyptian Central Bank Governor Hassan Abdalla emphasized that the renewed agreement reinforces the close cooperation between the two nations and supports their joint efforts to deepen economic ties. He added that the agreement will contribute to enhancing the resilience of financial markets in both countries and create broader opportunities for co-operation in finance and investment, ultimately supporting the economic development goals of both nations.