Central banks of the United Arab Emirates and Turkey on Wednesday inked bilateral currency swap agreement.
According to a statement by the Turkish Central Bank, the nominal size of the deal is mutually 18 billion UAE dirham and 64 billion Turkish liras.
The agreement aims to enhance bilateral trade and to further strengthen financial cooperation between the two countries.
“It will stand for a period of three years, with the possibility of an extension through mutual agreement,” the statement noted.
This agreement demonstrates the two central banks’ commitment to deepen bilateral trade in local currencies in order to advance economic and financial relations between our countries, Şahap Kavcıoğlu, the Turkish Central Bank governor, said after signing the deal.
The chief of UAE Central Bank Khaled Mohamed Balama also said: “Signing this agreement with the Central Bank of the Republic of Turkey reflects each nation’s desire to enhance bilateral cooperation in financial matters, particularly in the fields of trade and investments between the two countries.”
With this latest agreement, the Turkish Central Bank’s total swap figure with foreign central banks reached $28 billion.
Turkey and the UAE signed a total of 10 agreements on energy, environment, finance, and trade during a visit by Abu Dhabi’s Crown Prince Sheikh Mohammed bin Zayed al-Nahyan to Ankara last November.
The UAE has also allocated a $10 billion fund for direct investment in Turkey, the Abu Dhabi Developmental Holding Company also announced.
As of November, the bilateral trade volume stood at $7.1 billion. Turkey’s imports from the UAE totaled $2.2 billion, while its exports to the country stood at $4.9 billion.