The Central Bank of the United Arab Emirates and the Central Bank of Bahrain have signed a currency swap agreement involving the UAE dirham and the Bahraini dinar during a virtual signing ceremony. The nominal value of this swap agreement is set at 20 billion dirhams (equivalent to 2 billion Bahraini dinars) and will be in effect for a period of five years.
The agreement was signed by His Excellency Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Khalid Ibrahim Hamidan, Governor of the Central Bank of Bahrain, with the presence of deputy governors and senior officials from both institutions. The purpose of this agreement is to enhance financial cooperation between the two nations.
On this occasion, His Excellency Khaled Mohamed Balama stated, “This agreement underscores the UAE and Bahrain’s commitment to expanding the horizons of financial and monetary collaboration, supporting trade and investment relations. It also reflects both parties’ dedication to increasing the use of local currencies and developing frameworks for cooperation between central banks, contributing to financial stability and deepening regional and international partnerships.”
For his part, Khalid Ibrahim Hamidan remarked that “this agreement demonstrates the strong ties between the leadership of Bahrain and the UAE and represents a significant milestone in advancing the bilateral relations between the two brotherly countries across various domains. It also contributes to enhancing cooperation between central banks, supporting regional financial integration, and fostering economic growth and financial stability.”