UAE and Egypt Renew Currency Swap Agreement

The United Arab Emirates and Egypt have renewed a currency swap agreement aimed at strengthening trade, financial cooperation and economic development between the two countries, according to a report by Anadolu Agency.

The renewal comes after the US Treasury suspended dollar transactions at the Emirati branches of Egypt's Banque Misr late last month, a move that had raised questions about cross-border banking ties between the two countries.

Currency swap agreements allow central banks to exchange currencies to facilitate trade and provide liquidity without relying solely on US dollar transactions, a mechanism a number of countries have expanded in recent years.

Neither the UAE nor Egyptian authorities detailed the size or duration of the renewed swap arrangement in the report.