ALBAWABA- The Central Bank of Egypt and its Emirati counterpart have inked a bilateral agreement for local currency exchange.
The swap, valued at "5 billion Emirati dirhams for 42 billion Egyptian pounds" (equivalent to 1.36 billion dollars), was reported by the Emirates News Agency "WAM."
Khaled Mohammed Al-Tamimi, Governor of the Central Bank of the UAE, highlighted the agreement's potential for economic and financial market development between the two countries, anticipating positive impacts on trade, investment, and financial stability.
Hassan Abdullah, Governor of the Central Bank of Egypt, emphasized the pivotal role of the currency swap in supporting financial cooperation in local currencies. This agreement, reflecting trade facilitation, addresses a trade balance advantage for the UAE approaching 5 billion dollars.
Egyptian exports amounted to around two billion dollars, with imports from the UAE at about three billion dollars, accounting for half of the trade volume between the two countries.
This development is crucial as Egypt faces a foreign currency crisis, leading to the devaluation of the Egyptian pound by more than half since March 2022.
