On October 2, 2025, the central banks of the United Arab Emirates (UAE) and Turkey signed a bilateral currency swap agreement worth 18 billion UAE dirhams ($4.9 billion) or 198 billion Turkish lira. The agreement will enhance liquidity in both countries’ local currencies. It will also make it easier for businesses to settle commercial and financial transactions.
In addition to the currency swap, the two central banks signed two memorandums of understanding. These agreements promote the use of local currencies in cross-border trade. They also integrate payment and messaging systems to improve efficiency.
The UAE and Turkey expect this move to strengthen their economic ties. It provides a stable financial framework for bilateral trade and investment. The currency swap also reduces reliance on the US dollar for international transactions. This step aligns with broader regional efforts to encourage local currency use in trade.
