02.10.2025 15:27
A bilateral currency swap agreement was signed between the Central Bank of the Republic of Turkey and the Central Bank of the United Arab Emirates, with a total size of 198 billion TL and 18 billion dirhams.
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The Central Bank of the Republic of Turkey (CBRT) and the Central Bank of the United Arab Emirates (UAE) signed a bilateral currency swap agreement with a nominal amount of 198 billion lira and 18 billion dirhams.
In addition to this agreement, two memorandums of understanding were also signed, one aimed at promoting the use of local currencies in cross-border transactions, and the other aimed at connecting payment and messaging systems.
It was stated that the signed agreements aim to enhance financial and economic cooperation and strengthen bilateral trade.
SWAP AGREEMENT BETWEEN CBRT AND UAE CENTRAL BANK
In a statement from the CBRT, it was said: "The Central Bank of the Republic of Turkey (CBRT) and the Central Bank of the United Arab Emirates (CBUAE) have signed a bilateral currency swap agreement between the Turkish lira (TRY) and the UAE dirham (AED). In addition to this agreement, two memorandums of understanding have been signed, one aimed at promoting the use of local currencies (TRY-AED) in cross-border transactions, and the other aimed at connecting payment and messaging systems. These agreements aim to enhance financial and economic cooperation and strengthen bilateral trade."
The agreements and memorandums of understanding were signed by the President of the Central Bank of the Republic of Turkey, Dr. Fatih Karahan, and the President of the UAE Central Bank, Khaled Mohamed Balama, in a ceremony attended by senior officials from both sides.
OBJECTIVE: STRENGTHENING FINANCIAL COOPERATION BETWEEN THE TWO COUNTRIES
The nominal amount of the swap agreement has been set at 198 billion TRY and 18 billion AED. The agreement aims to promote bilateral trade by providing local currency liquidity to financial markets and enabling cross-border financial and commercial transactions to be carried out more effectively and efficiently, thereby further strengthening financial cooperation between the two countries.
The first memorandum of understanding aims to create a framework to promote the use of the Turkish lira (TRY) and the UAE dirham (AED) in cross-border payment transactions. In this context, it aims to develop the foreign exchange market in both countries, facilitate trade and external payments, increase investments, and accelerate economic growth and financial stability. The memorandum envisions the establishment of a local currency swap mechanism to broaden the use of both currencies in all transactions in current accounts and capital accounts, and to deepen the sharing of information and experience to achieve common goals.
The second memorandum of understanding aims to facilitate cross-border payment transactions in accordance with regulatory and supervisory requirements in both countries and to support the use of local payment cards. The memorandum also promotes the sharing of knowledge and expertise in the development of central bank digital currency platforms for wholesale and retail payments. Additionally, the memorandum aims to enhance the effectiveness of cross-border financial transactions by anticipating the integration of Turkey's FAST System with the instant payment platform (Aani) in the UAE. In this context, it is anticipated that the electronic systems and transition infrastructures in both countries will be interconnected to ensure interoperability and operational efficiency.
KARAHAN: THE AGREEMENTS PROVIDE NEW OPPORTUNITIES FOR STAKEHOLDERS IN BOTH COUNTRIES
Our President, Dr. Fatih Karahan, stated, "These agreements reflect the joint commitment of both parties to advance financial cooperation and develop bilateral trade using local currencies, and support the aim of establishing more comprehensive economic relations and sustainable development goals. The agreements provide new opportunities for facilitating trade and investment relations among stakeholders in both countries. We look forward to accelerating the sharing of expertise and experiences in the fields of payments and financial technology, including the adoption of advanced technologies, in a way that serves the economic and financial interests of both countries."
BALAMA: CONTRIBUTING TO THE DEVELOPMENT OF THE FOREIGN EXCHANGE MARKET FOR BOTH CURRENCIES
The President of CBUAE, Khaled Mohamed Balama, stated, "These signed agreements reflect the commitment of CBUAE and CBRT to work together to further strengthen the strategic partnership between the two countries, especially in the fields of finance, financial technology, and cross-border digital payments. The use of local currencies in cross-border financial and commercial transactions contributes to reducing costs and shortening transaction times, while also contributing to the development of the foreign exchange market for both currencies. This, in turn, increases trade volumes and financial transfers."
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