UAE and Bahrain Sign Five-Year Currency Swap Deal to Strengthen Ties
The agreement, signed during a virtual ceremony by Khaled Mohamed Balama and Khalid Humaidan, establishes a bilateral framework between the UAE Dirham and the Bahraini Dinar. The arrangement carries a five-year tenor and is designed to enhance liquidity support and facilitate cross-border transactions using local currencies.
Officials from both sides highlighted the strategic importance of the move. Balama stated that the agreement underscores a shared commitment to deepening financial and monetary cooperation, while also supporting trade and investment flows between the two countries. He added that promoting the use of national currencies would contribute to stronger financial stability and broader international partnerships.
Humaidan described the agreement as a milestone reflecting the longstanding relationship between the UAE and Bahrain. He noted that the initiative is expected to strengthen coordination between the two central banks, accelerate regional financial integration, and support sustainable economic growth.
The currency swap agreement builds on existing economic ties between the two Gulf nations and signals a continued push toward closer collaboration in the financial sector. Analysts view such agreements as key tools in enhancing resilience, reducing reliance on foreign currencies, and fostering stability across regional markets.
