BRICS Boost? UAE & Egypt Agree to $1.36 Billion Currency Swap

In a significant move bolstering economic ties, the United Arab Emirates (UAE) and Egypt have agreed to a substantial currency swap deal. The central banks of the United Arab Emirates and Egypt have set up a currency swap line, they announced on September 28. This agreement, amounting to roughly $1.36 billion, aims to facilitate trade and investment between the two nations.

Khaled Mohammed Balamma and a joint news release confirmed the agreement would allow the two central banks to exchange up to 5 billion Emirati dirhams and 42 billion Egyptian pounds, or roughly the equivalent of $1.36 billion. The Central Bank of Egypt (CBE) and the Central Bank of the United Arab Emirates (CBUAE) signed yesterday a bilateral currency swap agreement.

The deal, announced On September 28, involves the central banks of the United Arab Emirates and Egypt. The deal allows for an exchange between the UAE Dirham (AED) and the Egyptian Pound (EGP). This bilateral currency swap is expected to reduce reliance on third-party currencies and promote financial stability for both economies.

While not explicitly linked to BRICS membership, this $1.36 billion currency swap fuels speculation that the UAE and Egypt, both recently invited to join the BRICS alliance, are actively seeking to strengthen intra-regional economic cooperation ahead of their formal accession. This financial mechanism could provide a template for similar agreements with other BRICS nations in the future.