UAE, Egypt renew $1.36bn currency swap for 5 years

01/10/2026 04:09 AST

The UAE and Egypt renewed a 5 billion UAE dirhams ($1.36 billion) currency swap agreement for five years, strengthening financial links between the two countries as bilateral trade continues to expand.

The agreement, equivalent to 69 billion Egyptian pounds, was signed by the Central Bank of the UAE and the Central Bank of Egypt at the CBUAE's headquarters by the respective institutions' governors, according to a statement.

Local-currency settlements
The swap is intended to support bilateral trade and investment, promote the use of local currencies in settlements and strengthen financial cooperation between the two countries.

Trade between the UAE and Egypt reached about $9.68 billion in 2025, with Egypt recording a trade surplus of roughly $4.3 billion, according to Egypt's State Information Service.

Egyptian exports to the UAE rose to about $6.99 billion in 2025 from $1.22 billion in 2021, while imports increased to $2.69 billion from $2.46 billion, according to Egypt's Ministry of Investment and Foreign Trade.

In a statement, CBUAE Governor Khaled Mohamed Balama said: "The renewal of the currency swap agreement between the two nations reflects the depth and robustness of the strategic relations binding the United Arab Emirates and the Arab Republic of Egypt, and embodies our shared commitment to developing financial and banking cooperation."

The agreement will support financial stability and facilitate trade and investment between the two countries, while advancing efforts to deepen the use of local currencies in bilateral settlements, he added.

CBE Governor Hassan Abdalla said the renewal extends the close cooperation between the two countries and supports efforts to strengthen their economic ties.

"The agreement provides a vital tool to promote transactions in local currencies for commercial and financial settlements, enhancing the resilience of financial markets in both countries," Abdalla said.

He added that the agreement could open broader opportunities for cooperation in financing and investment.

The two central banks said they will continue working to deepen financial and banking cooperation and support economic stability and growth in both countries.

The UAE has pursued similar currency-swap arrangements with other trading partners. In April, the CBUAE and the Central Bank of Bahrain established a five-year 20 billion dirhams swap agreement, while the UAE and Turkiye signed an 18 billion dirhams currency swap in October 2025.

The agreements are aimed at strengthening financial cooperation, supporting local-currency settlements and facilitating cross-border trade.

Arab News