Egypt Signs Currency Swap Agreement With UAE

On Thursday, the central banks of Egypt and the United Arab Emirates (UAE) signed a currency swap deal, agreeing to exchange up to 42 billion Egyptian pounds (about 1.36 billion U.S. dollars) and 5 billion UAE dirhams at nominal value.

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According to a statement from the Central Bank of Egypt (CBE), the agreement comes within the framework of strengthening relations between Egypt and the UAE at all levels and contributes to increasing their trade volume.

The bank's governor Hassan Abdallah said in an official statement that the deal also serves as a cornerstone for joint financial cooperation between the two sides.

UAE Central Bank Governor Khaled Mohamed Balama said the agreement reflects the depth and strength of bilateral relations between the UAE and Egypt, and constitutes an important step to boost economic and financial ties.

Official data shows that Egypt has been struggling to curb soaring inflation over the past few years, amid local currency depreciation and foreign currency shortage.

The CBE has sharply devalued the Egyptian pound three times since last year, allowing it to lose almost half its value against the dollar.

The Egyptian government is working hard to attract foreign investments and boost the tourism sector, which can bring in hard currency to the country beset with economic challenges.