The Central Bank of Bahrain (CBB) and the Central Bank of the United Arab Emirates (CBUAE) have announced the establishment of a currency swap agreement between the Bahraini Dinar (BD) and the UAE Dirham (AED) during a virtual signing ceremony. The agreement has a nominal value of BD2 billion (AED 20 billion), with a tenor of five years.

The agreement is aimed at further strengthening existing co-operation between the two nations.

It was signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE and Khalid Humaidan, Governor of the Central Bank of Bahrain. 

On the deal, Balama said the signing of the currency swap agreement reaffirms the duo’s shared commitment to expanding financial and monetary cooperation, as well as strengthening trade and investment ties. 

The agreement demonstrates both UAE and Bahrian sides’ dedication to promoting the use of local currencies and advancing co-operation 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 UAE, thus marking a significant milestone in the bilateral relationship. 

It will further enhance cooperation between the two central banks and advance regional financial integration, emphasising that the agreement is expected to stimulate economic growth and reinforce financial stability in both countries, he added.-TradeArabia News Service