The Central Bank of the UAE and the Central Bank of the Republic of Türkiye have signed a bilateral currency swap agreement alongside two MoUs to boost financial and trade cooperation.
The swap arrangement, valued at $4.9bn is aimed at promoting bilateral trade by providing local currency liquidity to financial markets. It will also support the settlement of cross-border transactions in domestic currencies, reducing reliance on third-party reserve currencies such as the US dollar.
The MoUs focus on encouraging the use of local currencies in trade and linking payment and messaging systems between the two countries. The agreements mark a significant step in strengthening economic ties between the UAE and Türkiye.
Gulf Economist Staff Writer