Global: UAE and Türkiye Sign Agreements to Deepen Financial Cooperation and Enhance Cross-Border Payments

The Central Bank of the United Arab Emirates (CBUAE) and the Central Bank of the Republic of Türkiye (CBRT) have signed three landmark agreements designed to strengthen financial cooperation, advance payments innovation and expand the use of local currencies in bilateral transactions.

The agreements—comprising two new memorandums of understanding (MoUs) and a bilateral currency swap deal—aim to boost trade, improve liquidity access and enhance the efficiency of cross-border financial activity between both nations.

Expanding Local Currency Settlement and Payments Integration

The first MoU establishes a framework for increasing the use of the UAE dirham and Turkish lira in cross-border transactions, including trade, remittances, foreign exchange operations and capital account activities. The partnership also commits both central banks to deeper information sharing to support the transition toward greater local currency usage.

The second MoU focuses on strengthening cross-border payments infrastructure. It outlines plans to integrate the UAE’s Aani instant payment system with Türkiye’s FAST platform, enabling faster, more efficient real-time transactions between the two countries. The agreement also promotes the use of domestic payment cards and encourages joint work on central bank digital currency initiatives, supporting the development of the digital dirham and the digital Turkish lira.

AED–TRY Currency Swap Agreement

In addition to the MoUs, both central banks signed a bilateral currency swap arrangement valued at AED 18 billion and TRY 198 billion. The swap line is expected to enhance access to local currency liquidity, reduce reliance on foreign exchange markets and facilitate smoother settlement of financial and commercial operations.

Strengthening Financial Innovation and Regulatory Collaboration

CBUAE Governor Khaled Mohamed Balama and CBRT Governor Fatih Karahan underscored the importance of these agreements in reducing transaction costs, improving settlement times and supporting more resilient financial markets. They also highlighted the role of technological innovation—including artificial intelligence—in modernising financial systems and enabling new opportunities for trade and investment.

In a related development, the UAE’s Securities and Commodities Authority (SCA) and the Dubai Financial Services Authority (DFSA) announced a separate MoU to enhance audit oversight and strengthen regulatory coordination across key financial sectors.