The Central Bank of the United Arab Emirates (CBUAE) signed a currency swap agreement with a nominal size of 18 billion dirham ($5 billion) and 64 billion lire with its Turkish counterpart.

The agreement, aimed to promote bilateral trade and strengthen financial cooperation, will last for three years, with the possibility of an extension through mutual agreement, the bank said.

A bilateral swap agreement allows countries to trade in their domestic currency making payments at pre-set exchange rates without resorting to the use of a third currency.

(Reporting by Brinda Darasha; editing by Daniel Luiz)

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