Dubai, UAE — April 2026 — In a move set to deepen financial cooperation between two of the Gulf’s most prominent economies, the Central Bank of the UAE and the Central Bank of Bahrain have officially established a Currency Swap Agreement between the UAE Dirham and the Bahraini Dinar.
According to the Emirates News Agency, the landmark deal was finalized during a virtual signing ceremony and carries a nominal value of AED 20 billion, equivalent to BHD 2 billion, with a tenor of five years.
The agreement was signed by Khaled Mohamed Balama, governor of the Central Bank of the UAE, and Khalid Humaidan, governor of the Central Bank of Bahrain. The swap arrangement is designed to further strengthen the existing financial cooperation between the two nations, building on a long history of mutual economic support and coordination.
Speaking after the signing, Khaled Mohamed Balama emphasized that the agreement reaffirms the shared commitment of the UAE and the Kingdom of Bahrain to expanding financial and monetary cooperation.
He noted that the move will also help strengthen trade and investment ties between the two countries. Balama added that the swap demonstrates both sides’ dedication to promoting the use of local currencies in cross-border transactions and advancing cooperation frameworks between central banks.
Ultimately, he said, the agreement contributes to enhanced financial stability and the deepening of regional and international partnerships.
Khalid Humaidan echoed these sentiments, stating that the currency swap agreement reflects the strength and depth of the longstanding ties between the leaderships of the Kingdom of Bahrain and the United Arab Emirates. He described the deal as a significant milestone in the bilateral relationship.
Humaidan further explained that the agreement will enhance cooperation between the two central banks and advance regional financial integration. He emphasized that the swap is expected to stimulate economic growth and reinforce financial stability in both countries, benefiting businesses, investors, and citizens alike.
