The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Egypt (CBE) renewed their currency swap agreement in a ceremony held at the CBUAE headquarters in Abu Dhabi on September 29, 2026. The agreement, valued at 5 billion UAE dirhams (approximately 69 billion Egyptian pounds), will be effective for five years.

The renewal aims to strengthen bilateral trade, enhance financial cooperation, and support economic development between the two countries. The arrangement facilitates liquidity support in local currencies, promoting smoother financial transactions and stability in the exchange markets.

The agreement was signed by Khaled Mohamed Balama, Governor of the CBUAE, and Hassan Abdalla, Governor of the CBE. Balama highlighted the significance of the partnership, stating that the renewed swap reflects the robust strategic ties between the UAE and Egypt and underscores their mutual commitment to advancing collaborative financial and banking initiatives.

The currency swap agreement originally served as a tool to bolster economic ties by providing the two central banks with the ability to exchange currencies, thereby reducing reliance on third-party currencies and mitigating foreign exchange risks. This step is expected to facilitate increased trade flows and investment between the nations, particularly as both economies continue to pursue diversification and growth strategies.