CBUAE and Central Bank of Egypt Renew AED 5 Billion Currency Swap Agreement
The Central Bank of the UAE (CBUAE) and the Central Bank of Egypt (CBE) have renewed their UAE dirham–Egyptian pound currency swap agreement with a nominal value of AED 5 billion, equivalent to EGP 69 billion.
The agreement was renewed on 29 September 2026 during a signing ceremony held at the CBUAE headquarters in the UAE. It will remain valid for five years.
AED 5 Billion Currency Swap Agreement
The renewed agreement allows the two central banks to continue their currency-swap arrangement between the UAE dirham and Egyptian pound.
The nominal value of the agreement remains AED 5 billion, equivalent to EGP 69 billion, according to the CBUAE and the Emirates News Agency (WAM).
The original currency swap agreement was signed in September 2023 and provided for the exchange of UAE dirhams and Egyptian pounds with a nominal value of up to AED 5 billion and EGP 42 billion at that time.
Five-Year Renewal
The renewed agreement will be in effect for five years.
According to the two central banks, the renewal is intended to support bilateral trade, deepen financial cooperation and contribute to economic development in the UAE and Egypt.
Supporting Bilateral Trade and Financial Cooperation
The CBUAE said the agreement contributes to financial stability and facilitates trade and investment flows between the two countries.
CBUAE Governor Khaled Mohamed Balama said the renewal also supports greater use of local currencies in bilateral settlements.
CBE Governor Hassan Abdalla said the agreement provides a mechanism for promoting the use of local currencies in trade and financial settlements and supports efforts to deepen economic ties.
Both central banks reaffirmed their commitment to continued cooperation in financial and banking matters, including efforts related to financial stability and economic growth.
What Is a Currency Swap Agreement?
A currency swap agreement between central banks provides a framework for exchanging one currency for another under agreed terms.
In this case, the arrangement involves the UAE dirham and Egyptian pound. Such arrangements can provide a mechanism for participating institutions to access the counterpart currency and can support cross-border trade and financial settlements.
The specific operational use of the renewed facility will depend on the terms and implementation arrangements agreed by the two central banks.
Industry Impact
IFD Editorial Insight: The renewal of the AED 5 billion currency swap agreement extends an existing monetary cooperation mechanism between the UAE and Egypt for another five years.
For businesses and financial institutions engaged in bilateral trade, arrangements that facilitate access to local currencies can provide an additional mechanism for cross-border settlements.
The agreement also illustrates continued cooperation between the monetary authorities of the two countries in supporting bilateral financial and economic activity.
Its practical impact will depend on how the facility is utilised by the respective financial systems and market participants.
Looking Ahead
The renewed agreement provides a five-year framework for continued currency cooperation between the CBUAE and CBE.
Both institutions have stated that they will continue working together to deepen financial and banking cooperation and support their respective financial stability and economic objectives.
Source: Central Bank of the UAE, 29 September 2026.
