UAE, Bahrain central banks announce currency swap agreement

The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Bahrain (CBB) have announced the establishment of a currency swap agreement with a nominal value of AED 20 billion (BHD 2 billion) and a tenor of five years.

Currency swap lines between central banks allow each institution to obtain the other’s currency without resorting to foreign exchange markets, reducing transaction costs and exchange-rate risk for cross-border trade and investment.

CBUAE Governor, Khaled Mohamed Balama, said the agreement reaffirms the two countries shared commitment to expand financial and monetary cooperation, as well as strengthening trade and investment ties.

Khalid Humaidan, Governor of CBB, said the deal reflects the strength and depth of the longstanding ties between the leaderships of Bahrain and UAE, marking a significant milestone in the bilateral relationship.