In a significant move towards bolstering regional financial stability, the Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Egypt (CBE) have formally entered into a bilateral currency swap agreement worth more than $1 billion. This strategic collaboration announced on Thursday, stands as a testament to the strengthening economic ties between these two influential Middle Eastern and North African nations.
The cooperative pact, outlined in a joint statement by CBUAE and CBE, facilitates the exchange of UAE Dirhams and Egyptian Pounds, with an impressive cap of up to 5 billion dirhams (equivalent to $1.36 billion) and a substantial 42 billion Egyptian pounds.
Egypt’s economic landscape has been under considerable strain, highlighted by the Egyptian Pound’s significant depreciation—nearly a 50% decline against the US Dollar since March 2022, a vulnerability exposed by the Ukraine crisis. In response, the United Arab Emirates, along with Saudi Arabia and Qatar, has taken proactive measures to alleviate Egypt’s financial challenges. This includes substantial deposits into Egypt’s central bank and a commitment to substantial new investments, collectively aimed at stabilizing Egypt’s economy.
CBUAE Governor Khaled Mohamed Balama emphasized the partnership’s significance, stating, “The CBUAE is committed to deepening cooperation with the CBE, aiming to mutually benefit trade, investment, and financial sectors, while enhancing overall financial stability.” Balama’s words underscore the CBUAE’s determination to cultivate economic prosperity within the region.
Echoing this sentiment, Egypt’s Central Bank Governor Hassan Abdalla expressed optimism, affirming, “This agreement will undoubtedly enhance collaboration between our financial sectors in their respective currencies.” Abdalla’s confidence in the pact’s potential speaks to the shared vision of building a more resilient and interconnected financial landscape across the Middle East and North Africa.
This historic currency swap pact represents a welcome development for both nations, offering a ray of hope amidst challenging economic conditions. As the UAE and Egypt continue to forge ahead with this initiative, the global financial community observes with interest, anticipating positive effects on regional trade, investment, and financial sectors.
Photo source: Photo courtesy of Egyptian Presidential spokesman’s Facebook page
By: Montel Kamau
Serrari Financial Analyst
28th September, 2023
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
