UAE and Bahrain sign AED 20 billion Currency Swap Agreement

April 08, 2026 / 6:59 PM

Sharjah 24 – WAM: The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of Bahrain (CBB) announced a Currency Swap Agreement between the UAE Dirham (AED) and the Bahraini Dinar (BHD) during a virtual signing ceremony. The agreement has a nominal value of AED 20 billion (BHD 2 billion) with a five-year tenor.

Signatories and objectives

The agreement was signed by Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Khalid Humaidan, Governor of the Central Bank of Bahrain. It aims to strengthen financial cooperation between the two nations and promote the use of local currencies.

UAE perspective

Khaled Mohamed Balama highlighted that the agreement reaffirms both countries’ commitment to expanding monetary cooperation, enhancing trade and investment ties, and advancing central bank collaboration, contributing to regional and international financial stability.

Bahrain perspective

Khalid Humaidan stated that the agreement reflects the strong ties between the leaderships of Bahrain and the UAE, marking a milestone in bilateral relations. He noted that it would further central bank cooperation, support regional financial integration, and stimulate economic growth while reinforcing financial stability in both countries.