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The Central Bank of the UAE announced the renewal of its bilateral currency swap with the Central Bank of Egypt at a ceremony held at its Abu Dhabi headquarters on September 29, 2026. The pact carries a nominal value of AED 5 billion, equivalent to EGP 69 billion, and runs for five years. According to the CBUAE statement, the arrangement seeks to promote bilateral trade while deepening financial ties and backing broader economic development objectives in both countries.
This renewal updates an initial swap line established in September 2023 between the two institutions, when the Egyptian pound equivalent was set at 42 billion, CBUAE records from that period show. The governors of both central banks oversaw the latest signing, with His Excellency Khaled Mohamed Balama representing the UAE side and His Excellency Hassan Abdalla acting for Egypt. The CBUAE statement described the move as reflecting the strategic depth of relations between the United Arab Emirates and Egypt.
In the announcement, Balama stated, “The renewal of the currency swap agreement between the two countries reflects the depth and strength of the strategic relationship between the United Arab Emirates and the Arab Republic of Egypt, and demonstrates our shared commitment to advancing financial and banking cooperation.” He continued that the agreement contributes to financial stability and facilitates trade and investment flows between the two countries while marking progress toward greater use of local currencies in settlements in line with international best practices. The governor added that the step strengthens the resilience of the financial system in both nations.
Abdalla for his part said in the CBUAE release, “The renewal of the local currency swap agreement between the Central Bank of the UAE and the Central Bank of Egypt builds on the close cooperation between the two brotherly countries and supports joint efforts to deepen economic ties.” He noted that the mechanism promotes local currency use in trade and financial settlements, thereby enhancing market resilience, and expressed anticipation for expanded finance and investment cooperation that advances development goals. Both institutions, per the statement, reaffirmed their joint work to intensify banking collaboration in support of mutual interests, stability and growth.
Currency swap lines of this nature have grown in prominence across emerging markets as tools to mitigate dollar dependency in cross-border payments, a pattern visible in several recent CBUAE arrangements with regional partners. The UAE-Egypt pact aligns with wider efforts by both countries to expand non-oil trade volumes and investment channels, according to the central banks’ shared framing. Officials from the two sides have maintained regular coordination on such instruments since the original 2023 deal.
The renewed facility is expected to provide liquidity backstops that ease settlement frictions for traders and investors handling dirham and pound transactions. By extending the swap for a full five-year term, the governors signaled continuity in a relationship that has already produced measurable gains in financial sector linkages. The CBUAE indicated that implementation details will follow standard operational protocols established under the prior agreement.
