The central banks of the United Arab Emirates (UAE) and Turkey signed a bilateral currency swap worth 18 billion dirhams ($4.9 billion). The agreement boosts local currency liquidity and makes commercial and financial transactions between the two countries easier.
The central banks also signed two memorandums of understanding. These agreements encourage the use of local currencies in cross-border trade and integrate payment and messaging systems. Experts say these steps will deepen economic cooperation and simplify trade transactions between the UAE and Turkey.
At the time of the agreement, the exchange rates were $1 = 3.6728 UAE dirhams and $1 = 41.6076 Turkish lira. Analysts view this move as a major step toward strengthening economic ties and reducing dependence on third-party currencies in trade.
