UAE, Bahrain central banks announce Dhs20b currency swap agreement

The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Bahrain (CBB) announced the establishment of a Currency Swap Agreement between the UAE Dirham (Dhs) and the Bahraini Dinar (BHD) during a virtual signing ceremony. The agreement has a nominal value of  Dhs20 billion) BHD 2 billion, with a tenor of five years.

The agreement was signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE and Khalid Humaidan, Governor of the Central Bank of Bahrain. The agreement aims to further strengthen existing financial cooperation between the two nations.

Khaled Mohamed Balama emphasised that the signing of the currency swap agreement reaffirms the UAE's and the Kingdom of Bahrain's shared commitment to expanding financial and monetary cooperation, as well as strengthening trade and investment ties. He added that the agreement demonstrates both sides' dedication to promoting the use of local currencies and advancing cooperation frameworks between central banks, contributing to enhanced financial stability and the deepening of regional and international partnerships.

Khalid Humaidan stated that the agreement reflects the strength and depth of the longstanding ties between the leaderships of the Kingdom of Bahrain and United Arab Emirates, marking a significant milestone in the bilateral relationship. He added that it will further enhance cooperation between the two central banks and advance regional financial integration, emphasising that the agreement is expected to stimulate economic growth and reinforce financial stability in both countries.

WAM