Friday December 8th, 2023
Download SceneNow app

Egypt Signs Currency Swap Worth USD 1.4 Billion With UAE

The deal aims to alleviate the country’s ongoing foreign-currency shortage.

Cairo Scene

To address the foreign currency shortage in Egypt, the government of Egypt has inked a local-currency swap agreement worth approximately USD 1.4 billion with the United Arab Emirates. The deal will enable the exchange of local currencies between the central banks of both nations, with a limit of five billion dirhams and 42 billion Egyptian pounds, as stated in a joint announcement.

Egypt has been grappling with one of its most severe foreign-currency squeezes in recent years. In response, the country has devalued the pound three times since early 2022, resulting in a nearly 50% depreciation against the US dollar.

In addition to the agreement with the UAE, Egypt's central bank has revealed discussions regarding a currency exchange deal with China, while also considering the issuance of yuan-denominated bonds.