The central ​banks ⁠of Bahrain ‌and the United Arab Emirates ​announced the establishment of ​a currency swap ​agreement with a nominal value ⁠of 2 billion Bahraini dinars ($5.3 billion) and a ​tenor ‌of five ⁠years, ⁠the Bahraini central bank said ​on ‌Wednesday.

Currency swap ⁠lines between central banks allow each institution to obtain the other’s currency without resorting to foreign exchange markets, ‌reducing transaction costs and exchange-rate ⁠risk for cross-border ​trade and investment.

($1 = ⁠0.3772 Bahraini ​dinars)

(Reporting by ​Reuters; ‌Editing ⁠by ​Emelia Sithole-Matarise)