Signing a currency exchange agreement between Türkiye and the UAE with a value of 18 billion dirhams

The Emirates Central Bank and the Central Bank of the Republic of Turkey have signed the agreement to renew currencies between the UAE dirham and the Turkish lira, and the two memoranda of understanding, the first to consolidate cooperation in the use of local currencies to settle financial and commercial transactions across the border, and the second to link payment systems and financial correspondence, in order to deepen financial cooperation, and to upgrade commercial and economic relations in the two friendly countries.

The agreement and the two memoranda of understanding were signed, Khaled Mohamed Balama, Governor of the Emirates Central Bank, and Dr. Fatih Karahan, Governor of the Turkish Central Bank, in the presence of the governor’s assistants and senior officials from both sides.

The agreement to renew the barter of the two countries, whose nominal value reaches 18 billion dirhams and 198 billion Turkish liras, aims to develop financial and commercial cooperation between the two countries, by providing liquidity in the local currency of financial markets to settle financial and commercial transactions across the border in a more effective and efficient way.

While the first memorandum of understanding aims to establish a framework for enhancing the use of the UAE dirham and Turkish lira in settling transactions through the border, in a way that contributes to the development of the exchange market, facilitating trade and the settlement of external transfers, increasing investment, and raising the pace of economic growth and stability in the two countries. The memorandum includes the establishment of the scope of the settlement of local currencies to expand areas of the use of the two countries ’currencies in current account transactions, capital account transactions, in addition to deepening the areas of exchanging information and experiences to achieve the common interests and goals between the two countries.

The second memorandum of understanding also aims to facilitate border payment transactions, use local payment cards in line with the regulatory and supervisory requirements of the two countries, and exchange experiences in developing the digital currency platform for central banks for individuals and institutions in payments across the border. The memorandum includes the link between the immediate payment platform (Annie) with the similar platform in the Republic of Turkey (Fast), to address financial transactions across the border in a more effective way, in addition to linking electronic regulations and share in both countries.

For his part, Khaled Mohammed Al -Amma, Governor of the Emirates Central Bank, stressed: “The agreements signed today reflect the commitment of the Emirates Central Bank and the Turkish Central Bank to joint work to support the efforts of the two friendly countries to improve strategic partnership relations to new horizons in the financial fields, financial technology and digital payments across the borders where the use of the two countries’ currencies in financial and commercial transactions across borders contribute to reducing costs and time in settlement Transactions, and the development of the exchange market, which leads to an increase in trade exchange and financial transfers.

For his part, Dr. Fatih Karahan, Governor of the Turkish Central Bank: “Signing the agreements is the will of the two parties to develop financial cooperation and develop bilateral trade between the two countries in local currencies to advance economic relations and achieve the aim of comprehensive development, as the agreements allow the field wide to facilitate trade and investment relations between the stakeholders in the two countries. It achieves the economic and financial interests of the two friendly countries. “