{"id":607252,"date":"2023-10-01T00:00:00","date_gmt":"2023-10-01T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/01\/egypt-uae-sign-currency-swap-agreement\/"},"modified":"2023-10-01T00:00:00","modified_gmt":"2023-10-01T00:00:00","slug":"egypt-uae-sign-currency-swap-agreement","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/10\/01\/egypt-uae-sign-currency-swap-agreement\/","title":{"rendered":"Egypt, UAE sign currency swap agreement"},"content":{"rendered":"<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"> <strong> EGP <\/strong><strong> for AED: <\/strong>The Egyptian and Emirati central banks reached a currency swap agreement on Thursday worth almost USD 1.4 bn, the two sides said in <a target=\"_blank\" href=\"https:\/\/bit.ly\/3REWjkI\" style=\"\" rel=\"noopener\">a<\/a> <a target=\"_blank\" href=\"https:\/\/bit.ly\/3REWjkI\" style=\"\" rel=\"noopener\">joint<\/a> <a target=\"_blank\" href=\"https:\/\/bit.ly\/3REWjkI\" style=\"\" rel=\"noopener\">statem<\/a> <a target=\"_blank\" href=\"https:\/\/bit.ly\/3REWjkI\" style=\"\" rel=\"noopener\">ent<\/a>. Under the agreement, the Central Bank of Egypt (CBE) will be able to obtain up to AED 5 bn (USD 1.36 bn) in return for EGP 42 bn.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> \u201cIt seems again that the UAE is providing Egypt with financial support,\u201d <\/strong> James Swanston, emerging-markets economist at Capital Economics, told the <a target=\"_blank\" href=\"https:\/\/abcnews.go.com\/International\/wireStory\/emirati-egyptian-central-banks-agree-currency-swap-deal-103562675\" style=\"\" rel=\"noopener\">Associated Press<\/a>. \u201cEgypt's central bank needs more ammunition to prop up its currency.\u201d<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Another lifeline from our GCC neighbor: <\/strong>The nominal value of the agreement has an implied exchange rate of EGP 8.40 for every AED, in line with the official rate, economist Mona Bedeir told Enterprise yesterday. The timing of the agreement is important as we continue to grapple with securing FX liquidity to meet import needs, including oil and debt obligations, Bedeir added.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> What they said: <\/strong> This currency swap \u201ccontributes to facilitating and increasing trade exchange between the two countries,\u201d said CBE governor Hassan Abdalla. The agreement \u201crepresents an opportunity to develop economic and financial markets between the two sides,\u201d said Khaled Balama, governor of the Central Bank of the UAE.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Next up: A CNY swap? <\/strong> The Egyptian and Chinese central banks discussed a potential swap line during talks in Beijing last week, the CBE <a target=\"_blank\" href=\"https:\/\/www.cbe.org.eg\/ar\/news-publications\/news\/2023\/09\/27\/10\/29\/cbe-governor-meets-with-his-chinese-counterpart-in-beijing\" style=\"\" rel=\"noopener\">said<\/a> Wednesday. The delegation, led by Abdalla, also talked about Egypt\u2019s <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/67dc1e03-38c4-429c-b223-cb07288defa2\" style=\"\" rel=\"noopener\">plans to issue<\/a> USD 500 mn of CNY-denominated panda bonds in China. <\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Egypt, China could expand the use of RMB in future projects: <\/strong> The president of the <a target=\"_blank\" href=\"https:\/\/www.cdb.com.cn\/English\/\" style=\"\" rel=\"noopener\">China<\/a> <a target=\"_blank\" href=\"https:\/\/www.cdb.com.cn\/English\/\" style=\"\" rel=\"noopener\">Development Bank (CDB)<\/a>, Tan Jiong, agreed to explore increasing the use of the RMB in local projects as well as joint financing activities during talks with Abdalla, according to <a target=\"_blank\" href=\"https:\/\/www.cbe.org.eg\/ar\/news-publications\/news\/2023\/09\/28\/15\/31\/the-governor-of-the-central-bank-of-egypt-meets-the-president-of-china-development-bank\" style=\"\" rel=\"noopener\">a separate CBE statement<\/a>. Hossam Heiba, head of the General Authority for Freezones and Investment (GAFI), floated the idea last month, saying talks were ongoing that could see RMB-denominated investment in Egypt.<\/p>\n<p style=\"padding:0;margin:0;line-height:1.15;orphans:2;widows:2;text-align:left\"><strong> Remember: <\/strong>The CBE signed a three-year agreement with China <a target=\"_blank\" href=\"https:\/\/enterprise.press\/stories\/2016\/12\/07\/egypt-signs-currency-swap-agreement-with-china\/\" style=\"\" rel=\"noopener\">in December 2016<\/a> that saw China deposit CNY 18 bn against the equivalent in EGP, which expired at the end of 2019. The government had considered <a target=\"_blank\" href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/ecc02ff7-d619-4956-8e0a-48d7aa229593\" style=\"\" rel=\"noopener\">renewing<\/a> the agreement in 2020 before the outbreak of covid-19.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The agreement will see Egypt exchange EGP 42 bn for AED 5 bn!_NewsLead_!<\/p>\n","protected":false},"author":1,"featured_media":607253,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7206],"tags":[271,116,104,975,6680,72,2276,90],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-607252","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","tag-central-bank-of-egypt","tag-china","tag-economy","tag-egypt-china-relations","tag-egypt-uae-relations","tag-enterpriseam","tag-hassan-abdalla","tag-uae","wpautop","entry"],"acf":{"mongo_id":"33abb6a6-8746-4e6a-b1d3-45d924437ae7","order":"0","is_powered_by":false,"story_type":"1","photo_url":"https:\/\/ent.news\/2023\/9\/1683.JPG","photo_position":"above","homepage_title":"","full_issue_title":"Egypt, UAE sign currency swap agreement","related_issue":[607247],"teaser":"The agreement will see Egypt exchange EGP 42 bn for AED 5 bn!_NewsLead_!","voice_url":"https:\/\/s3.us-east-1.amazonaws.com\/ent.news\/audio\/2023\/10\/.afcfb256-2235-4638-80b8-c7ee07da66f4.mp3"},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - 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Investments in Egypt by UAE banks grew AED 11.7 bn\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":596625,"url":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/03\/emirati-bank-investments-in-egypt-stand-at-aed-43-4-bn-at-end-of-1q2019\/","url_meta":{"origin":607252,"position":1},"title":"Emirati bank investments in Egypt stand at AED 43.4 bn at end of 1Q2019","author":"enterpriseam admin","date":"3 July 2019","format":false,"excerpt":"INVESTMENT WATCH- UAE banks invested USD 11.8 bn in Egypt in 1Q2019: Investments by Emirati banks in Egyptian assets reached AED 43.4 bn (USD 11.8 bn) at the end of 1Q2019,according to UAE Central Bank data, Emirates News Agency (WAM) reports. Investments in Egypt by UAE banks grew AED 11.7\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":568890,"url":"https:\/\/enterpriseam.com\/egypt\/2020\/02\/06\/central-bank-of-egypt-seeks-to-renew-currency-swap-agreement-with-china\/","url_meta":{"origin":607252,"position":2},"title":"Central Bank of Egypt seeks to renew currency swap agreement with China","author":"enterpriseam admin","date":"6 February 2020","format":false,"excerpt":"The Central Bank of Egypt (CBE) is considering renewing a currency swap with China that saw China deposit CNY 18 bn (equivalent to around USD 2.6 bn) against the equivalent in EGP, which expired at the end of last year, Al Mal reports, citing unnamed sources. The CBE had signed\u2026","rel":"","context":"In &quot;Speed Round&quot;","block_context":{"text":"Speed Round","link":"https:\/\/enterpriseam.com\/egypt\/category\/speed-round\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/internal\/536550.png?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":557643,"url":"https:\/\/enterpriseam.com\/egypt\/2021\/09\/27\/dubais-amanat-to-invest-egp-4-3-bn-in-egypt-saudi-arabia-uae\/","url_meta":{"origin":607252,"position":3},"title":"Dubai\u2019s Amanat to invest EGP 4.3 bn in Egypt, Saudi Arabia + UAE","author":"enterpriseam admin","date":"27 September 2021","format":false,"excerpt":"Amanat is on the lookout for Egyptian education, healthcare firms: Dubai-listed education and healthcare investment firm Amanat could invest around AED 1 bn (EGP 4.3 bn) to acquire controlling shares in Egyptian, Saudi, and Emirati firms, the company\u2019s CEO told Al Arabiya on Sunday. The company has around AED 700\u2026","rel":"","context":"In &quot;M&amp;A WATCH&quot;","block_context":{"text":"M&amp;A WATCH","link":"https:\/\/enterpriseam.com\/egypt\/category\/ma-watch\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2021\/9\/363.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":616628,"url":"https:\/\/enterpriseam.com\/egypt\/2024\/03\/07\/looking-back-at-the-months-preceded-the-egp-float\/","url_meta":{"origin":607252,"position":4},"title":"Looking back at the months preceded the EGP float","author":"enterpriseam admin","date":"7 March 2024","format":false,"excerpt":"The government has been gearing towards this moment","rel":"","context":"In &quot;Economy&quot;","block_context":{"text":"Economy","link":"https:\/\/enterpriseam.com\/egypt\/category\/economy\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2024\/2\/98.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":577660,"url":"https:\/\/enterpriseam.com\/egypt\/2022\/11\/30\/taaleem-shares-drop-on-dfm-debut-hsbc-is-getting-out-of-canada\/","url_meta":{"origin":607252,"position":5},"title":"Taaleem shares drop on DFM debut + HSBC is getting out of Canada","author":"enterpriseam admin","date":"30 November 2022","format":false,"excerpt":"Rough start to Taaleem\u2019s Dubai debut: UAE school operator Taaleem Holding\u2019s shares closed down 15% yesterday to AED 2.55 on its first day of trading on the DFM, according to market data. The company raised AED 750 mn after selling 250 mn shares at AED 3 apiece, the top end\u2026","rel":"","context":"In &quot;PLANET FINANCE&quot;","block_context":{"text":"PLANET FINANCE","link":"https:\/\/enterpriseam.com\/egypt\/planet-finance\/\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/ent.news\/2022\/11\/511.jpg?fit=%2C&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]}],"_links":{"self":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607252","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/comments?post=607252"}],"version-history":[{"count":0,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/posts\/607252\/revisions"}],"acf:post":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/issue\/607247"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media\/607253"}],"wp:attachment":[{"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/media?parent=607252"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/categories?post=607252"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/tags?post=607252"},{"taxonomy":"brand","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/brand?post=607252"},{"taxonomy":"newspack_spnsrs_tax","embeddable":true,"href":"https:\/\/enterpriseam.com\/egypt\/wp-json\/wp\/v2\/newspack_spnsrs_tax?post=607252"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}