The UAE and Bahrain have signed a currency swap agreement worth AED 20 billion (Bahrain dinar 2 billion), marking a step towards closer financial cooperation and stronger economic ties between the two countries. The agreement, signed during a virtual ceremony, brings the UAE dirham (AED) and Bahraini dinar (BHD) into the five-year arrangement. The agreement was officially signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Khalid Humaidan, Governor of the Central Bank of Bahrain. The agreement aims to strengthen coordination between the two central banks while supporting trade and investment flows by encouraging the use of local currencies. Khalid Mohammed Barama said the agreement reflects a shared commitment to deepen financial and monetary cooperation. He noted that it supports the expansion of the use of national currencies in transactions and helps create a stronger framework for cooperation between central banks. He said the move would contribute to financial stability and strengthen regional and international partnerships. Khalid Humaidan said the agreement reflected the close ties between the UAE and Bahrain. He said this marked an important step in advancing cooperation between the two countries’ financial systems and supported broader regional financial integration goals. He added that the agreement is expected to support economic growth while strengthening financial stability in both countries. Currency swap agreements allow central banks to exchange currencies, helping to ensure liquidity and make cross-border trade smoother. Officials viewed the move as part of a broader effort to strengthen economic cooperation in the region.
