Egypt, UAE sign trade agreement swapping EGP 42 billion for 5 billion AED

Ahram Online , Thursday 28 Sep 2023

The Central Bank of Egypt (CBE) signed a trade agreement with the Central Bank of the UAE (CBUAE) that involves swapping EGP 42 billion for AED 5 billion, according to an official statement on Thursday.

Photo File: Hassan Abdullah, governor of the Central Bank of Egypt (CBE), signs a currency swap deal
File Photo: Hassan Abdullah, governor of the Central Bank of Egypt (CBE), signs deal with his Emirati counterpart Khaled Mohamed Balama.

The agreement was signed by CBE governor Hassan Abdullah and the CBUAE governor Khaled Mohamed Balama to facilitate and boost trade exchange between both countries.

"This deal promotes cooperation between the Egyptian and Emirati financial sectors in their respective currencies," Hassan Abdullah commented.

For his part, Balama said the deal represents a chance to deepen cooperation between CBUAE and CBE in various sectors, including trade, investment, and finance.

The currency swap deal comes in light of the government's efforts to meet a shortage in foreign currency.

In July, Egypt's net foreign reserves (NIRs) increased slightly by $146 million to $34.806 billion, up from $34.660 billion in June.

Trade between Egypt and the UAE grew by 6.5 percent to register $4.6 billion during the first 11 months of 2022, up from $4.3 billion in the same period in 2021.

Egyptian imports from the UAE registered $2.9 billion, down from $3 billion.

Meanwhile, Egyptian exports to the UAE increased to $1.9 billion, up from $1.8 billion.

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