The Central Bank of the UAE (CBUAE) and the National Bank of Ethiopia (NBE) have signed a significant currency swap agreement, along with two Memorandums of Understanding (MoUs), aimed at enhancing financial cooperation between the two countries.
The deal allows the CBUAE and NBE to exchange local currencies up to AED 3 billion and ETB 46 billion. This move is designed to provide liquidity in local currencies and facilitate smoother cross-border transactions.
Under the first MoU, both countries will promote the use of their respective currencies (UAE Dirham and Ethiopian Birr) for settling trade transactions. This initiative aims to make commercial dealings between the UAE and Ethiopia more efficient and to foster financial cooperation.
The second MoU focuses on linking the two countries’ payment systems, including instant payment platforms and national card switches (UAESWITCH and ETHSWITCH). This will enhance the speed and security of financial transactions.The agreements are expected to boost trade and investment between the UAE and Ethiopia by simplifying financial operations and increasing economic stability.
“These agreements highlight the strong economic ties between our nations. By swapping currencies and linking our payment systems, we are paving the way for enhanced trade and investment opportunities.” said Khaled Mohamed Balama, Governor of CBUAE.
Mamo Mihretu, Governor of NBE said “The UAE is a key trading partner and investor for Ethiopia. This currency swap provides critical funding and diversifies our financial options, supporting our growing trade and investment activities.”
