According to a statement from the central bank, a bilateral currency swap agreement was signed between the two central banks in Turkish lira and UAE dirham (AED). The nominal value of the swap agreement was set at 198 billion lira and 18 billion AED. The agreement aims to provide local currency liquidity to financial markets and facilitate cross-border commercial and financial transactions more effectively.
In addition to the swap agreement, two memoranda of understanding (MoUs) were also signed to promote the use of local currencies in cross-border transactions and to link payment-messaging systems.
The first MoU aims to create a framework that will increase the use of Turkish lira and AED in cross-border payments, develop the foreign exchange market, facilitate trade and investment, and support financial stability.
The second MoU covers the integration of Turkey’s FAST system with the UAE’s instant payment platform. Within this framework, cross-border payments will be executed faster and at lower cost, local payment cards will be supported, and information will be shared for central bank digital currencies.
The agreements were signed by TCMB Governor Fatih Karahan and UAE Central Bank Governor Khaled Mohamed Balama, with the participation of senior officials.
Karahan emphasized that the agreements will advance financial cooperation between the two countries, stating, “The development of trade in local currencies will also support sustainable development goals. We expect joint efforts in financial technology and artificial intelligence to accelerate.”
UAE Central Bank Governor Balama stated that the cooperation strengthens strategic partnership, emphasizing, “The use of local currencies in cross-border transactions will reduce costs, shorten processing times, and at the same time increase trade volumes and financial transfers.”
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