The Central Bank of the UAE (CBUAE) and the Central Bank of Bahrain (CBB) have signed a Currency Swap Agreement between the UAE Dirham (AED) and the Bahraini Dinar (BHD).
The agreement, which has a value of AED20 billion (BHD2 billion) and a tenor of five years, was signed during a virtual ceremony by Khaled Mohamed Balama, Governor of the CBUAE, and Khalid Humaidan, Governor of the CBB.
The agreement is designed to strengthen financial cooperation between the two countries. It focuses on promoting the use of local currencies and advancing cooperation frameworks between the two central banks.
UAE and Bahrain strengthen financial ties with AED20 billion swap agreement
Balama said the signing “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.”
Humaidan said the agreement “reflects the strength and depth of the longstanding ties between the leaderships of the Kingdom of Bahrain and United Arab Emirates,” describing it as a milestone in the bilateral relationship.
He added that it “will further enhance cooperation between the two central banks and advance regional financial integration,” and that the agreement “is expected to stimulate economic growth and reinforce financial stability in both countries.”
