Manama: 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 involving the Bahraini dinar (BHD) and the UAE dirham (AED). This agreement was formalized during a virtual ceremony.
According to Bahrain News Agency, the agreement carries a nominal value of BHD 2 billion (AED 20 billion) and spans a term of five years. It was signed by Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, and Khalid Humaidan, Governor of the Central Bank of Bahrain. The primary aim is to enhance financial and monetary cooperation between the two nations.
Balama emphasized that the agreement is a step towards expanding cooperation and strengthening trade and investment ties. It also promotes the use of local currencies, contributing to financial stability and broader partnerships.
Humaidan highlighted that the agreement is a reflection of the longstanding ties between the Kingdom of Bahrain and the United Arab Emirates. It supports further cooperation between the two central banks and plays a role in enhancing financial integration and supporting economic growth.