The central banks of the United Arab Emirates (UAE) and Ethiopia have signed a bilateral currency swap agreement worth up to $817 million. This deal aims to boost financial and commercial cooperation between both countries by facilitating the use of local currencies for cross-border transactions as well as integrating their payment systems. Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, emphasized that the agreement will boost economic, trade, and investment prospects between the two nations, thereby leading to improved financial stability. Mamo E. Mihretu, Governor of the National Bank of Ethiopia, highlighted the UAE’s role as a major trading partner and source of foreign investment for Ethiopia. According to him, the deal will diversify the range of currencies at Ethiopia’s disposal and support its growing trade and investment sector in the coming years. The agreement also includes collaboration on financial technology and central bank digital currencies.
SOURCE: BUSINESS INSIDER
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