The UAE and Bahrain sign a currency swap agreement worth 20 billion dirhams/Photo: WAM
The UAE and Bahrain have signed a currency swap agreement worth AED 20 billion (BD 2 billion), marking a step towards closer financial cooperation and stronger economic ties between the two countries. The agreement, which was signed during a virtual ceremony, combines the UAE dirham and the Bahraini dinar under a five-year arrangement. It was formalized by Khaled Mohammed Balamah, Governor of the Central Bank of the United Arab Emirates, and Khaled Humaidan, Governor of the Central Bank of Bahrain. The deal aims to enhance coordination between the two central banks while supporting trade and investment flows by encouraging the use of local currencies. Khaled Muhammad Balama said that the agreement reflects a joint commitment to deepening financial and monetary cooperation. He pointed out that it supports efforts to expand the use of national currencies in transactions and helps build stronger frameworks for cooperation between central banks. According to him, this step will contribute to achieving financial stability and strengthening regional and international partnerships.
Khaled Humaidan described the agreement as a reflection of the close relationship between the UAE and Bahrain. He said that it represents an important step in enhancing cooperation between the financial systems of the two countries and supports the broader goals of regional financial integration. He added that the agreement is expected to support economic growth while enhancing financial stability in both countries. Currency swap agreements allow central banks to exchange currencies, helping ensure liquidity and making cross-border trade smoother. Officials see this move as part of broader efforts to boost economic cooperation in the region.
