UAE & Ethiopia Agree to Currency Swap Worth USD 817 Million

The UAE Central Bank and the National Bank of Ethiopia have partnered to establish a bilateral currency swap agreement worth USD 817 million, which will further financial cooperation between the two countries. 

The agreement allows for the exchange of the respective local currencies, the Emirati Dirham and the Ethiopian Birr, at a nominal value of up to AED 3 billion and ETB 46 billion. The currency swap involves the swapping of principal and interest payments on a loan made in a certain currency for a loan of equal value in another currency. 

Recent years have seen increased cooperation between the UAE and Ethiopia, with the UAE’s non-oil exports to Ethiopia reaching USD 210.3 million in 2022. The countries exchange pharmaceuticals and chemicals and cooperate in the fields of tourism, agriculture, renewable energy and food security, amongst other fields.