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

The United Arab Emirates and Egypt have extended their Dh5 billion currency swap agreement, aimed at strengthening economic development. The renewed pact, valued at 69 billion Egyptian pounds, will remain in effect for five years. The deal, which was signed by Khaled Balama, the governor of the UAE Central Bank, and Hassan Abdalla, the governor of the Central Bank of Egypt, in Abu Dhabi, underscores the two nations' commitment to boosting trade relations and financial cooperation.

The currency swap enables the exchange of principal and interest payments on loans made in different currencies, bolstering financial stability and facilitating trade and investment between the two countries. This agreement marks a significant step in promoting the use of local currencies in bilateral settlements, aligning with international best practices.

The UAE, the Arab world's second-largest economy, has been focusing on safeguarding its financial system amid regional uncertainty, and currency swaps play a crucial role in this strategy. In April, UAE and Bahrain signed a Dh20 billion agreement to strengthen monetary cooperation and support trade and investment. The UAE also has Dh18 billion swap deals with China and Turkey.

Egypt, the Arab world's most populous nation, is a major economic partner of the UAE, with bilateral trade reaching nearly $9.7 billion in 2025.