UAE Central Bank and National Bank of Ethiopia Sign Bilateral Agreements
His Excellency Khaled Mohamed Balama, Governor of the UAE Central Bank, and His Excellency Mamo Mihretu, Governor of the National Bank of Ethiopia, signed a bilateral agreement for the exchange of the UAE dirham and the Ethiopian birr.
Additionally, they established memoranda of understanding (MoUs) to enhance the use of local currencies in cross-border transactions.
And also to link payment systems and financial correspondences between the two countries.
The agreement allows both parties to exchange local currencies up to a nominal value of AED 3 billion and 46 billion Ethiopian birr.
Enhance the Effectiveness of Financial and Commercial Cross-border Transactions
This move aims to foster financial and trade cooperation between the UAE and Ethiopia.
This is by facilitating liquidity provision in local currency to financial markets in both nations.
The goal is to enhance the efficiency and effectiveness of financial and commercial cross-border transactions.
Under the first MoU, the UAE Central Bank and the National Bank of Ethiopia will work to strengthen the use of local currencies in settling transactions between the two countries.
The MoU includes provisions and measures to facilitate the settlement of commercial transactions using the two local currencies.
As well as information exchange and expertise sharing.
Financial technology
This collaboration will contribute to the development of financial markets, facilitate bilateral trade, and encourage direct investment.
The second MoU focuses on cooperation in payment platform services and electronic clearing.
It aims to link instant payment systems, electronic clearing, and financial correspondences between the two countries.
This is in line with regulatory requirements for each.
Additionally, the collaboration extends to financial technology and central bank digital currencies.
Paving the way for joint business opportunities
Commenting on the signing of the agreements and MoUs, His Excellency Khaled Mohamed Balama, Governor of the UAE Central Bank, stated:
“These agreements and MoUs reflect the depth and strength of the economic partnership between the two countries.
They present significant opportunities for further development in trade, investment, and financial areas.
The currency exchange and the use of local currencies in cross-border settlements, along with the cooperation in payment systems, will pave the way for joint business opportunities in the financial and banking sector.
We look forward to working closely with our partners in Ethiopia to enhance financial stability and achieve mutual interests.”
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UAE Central Bank and Ethiopia National Bank agreement facilitates the settlement of expanding investment transactions
In response, His Excellency Mamo Mihretu, Governor of the National Bank of Ethiopia, emphasized the following:
“The UAE is one of Ethiopia’s key trading and investment partners.
The currency exchange agreement will provide a wide range of currencies.
It will also facilitate the settlement of growing and expanding commercial and investment transactions in the coming years.
Both the agreement and the signed MoUs demonstrate the commitment of both countries to deepen bilateral partnerships.
Promoting sustainable development and a prosperous future.”
