The Central Bank of the UAE (CBUAE) and the Central Bank of the Republic of Türkiye (CBRT) have signed a bilateral currency swap agreement between the UAE dirham (AED) and the Turkish lira (TRY), alongside two MoUs.

The swap agreement, valued at AED 18 billion and TRY 198 billion, is intended to support bilateral trade by providing local currency liquidity and facilitating settlement of cross-border transactions.

The first MoU establishes a framework for the use of AED and TRY in cross-border payments, with the aim of developing the foreign exchange market, facilitating trade and remittances, and promoting financial stability.

It also covers local currency settlement for current and capital account transactions, and information sharing between the two central banks.

The second MoU focuses on payment systems.

It outlines integration of the UAE’s instant payment platform (Aani) with Türkiye’s FAST system, supports interoperability between domestic payment cards, and includes cooperation on central bank digital currency (CBDC) development.

Khaled Mohamed Balama, Governor of the CBUAE, said:

“The agreements reflect the commitment of the Central Bank of the UAE and the Central Bank of the Republic of Türkiye to work together in finance, financial technology, and cross-border digital payments. The use of local currencies in cross-border transactions contributes to reducing costs and settlement time, while also helping to develop the exchange market for both currencies.”

Fatih Karahan, Governor of the CBRT, said:

“These agreements reflect the shared commitment of both parties to advancing financial cooperation and fostering bilateral trade using local currencies. We look forward to exchanging expertise in payments and financial technology, and to accelerating the adoption of advanced technologies in the financial sector.”

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