In a move aimed at fortifying economic cooperation and financial stability between the United Arab Emirates (UAE) and Egypt, a bilateral currency swap agreement worth 5 billion Emirati dirhams for 42 billion Egyptian pounds, equivalent to approximately 1.36 billion dollars, has been formally announced. The report, first disseminated by the Emirates News Agency (WAM), has garnered widespread attention as it holds potential implications for both nations’ economic landscapes.
Khaled Mohammed Al-Tamimi, Governor of the Central Bank of the UAE, expressed optimism about the far-reaching effects of this agreement, underlining its potential to stimulate economic and financial market development between the two countries.
Al-Tamimi anticipates that the currency swap will have positive repercussions, particularly in terms of boosting trade, encouraging investments, and reinforcing financial stability in the UAE and Egypt.
On the Egyptian side, Hassan Abdullah, Governor of the Central Bank of Egypt, emphasized the pivotal role this currency swap agreement will play in enhancing financial cooperation between the two nations, with a particular focus on conducting transactions in local currencies.
The agreement, seen as a measure to streamline trade processes, addresses a notable trade balance advantage for the UAE, which stands at nearly 5 billion dollars.
Egypt’s exports to the UAE have amounted to approximately two billion dollars, while imports from the UAE reached approximately three billion dollars, accounting for nearly half of the total trade volume shared between these two nations.
This agreement, against the backdrop of Egypt’s ongoing foreign currency challenges, marks a critical step forward in addressing the devaluation of the Egyptian pound, which has depreciated by over half since March 2022.
By xamse
October 1, 2023
