UAE-Turkey Currency Swap Agreement Expands Market Liquidity
The United Arab Emirates and Turkey have agreed on a $4.90 billion currency swap to enhance local currency liquidity in financial markets. The deal includes promoting cross-border currency use, along with integrating payment and messaging systems between both nations.
The central banks of the United Arab Emirates and Turkey have reached a significant bilateral currency swap agreement worth approximately 18 billion UAE dirham ($4.90 billion) and 198 billion Turkish lira. This development aims to bolster local currency liquidity within financial markets, according to statements released on Thursday.
The Turkish central bank highlighted that the swap agreement is intended to ensure smoother financial operations by providing local currency liquidity. This move looks to streamline the settlement of commercial and financial transactions across both nations.
In addition, the central banks have signed two Memorandums of Understanding (MoUs) aimed at enhancing the use of local currencies for cross-border transactions. These MoUs also focus on linking payment and messaging systems to foster economic collaboration between the countries.
(With inputs from agencies.)
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