Türkiye-UAE swap deal to enhance digital banking, attract Gulf investments

ISTANBUL

Economists predict that the currency swap agreement signed Thursday between the central banks of Türkiye and the United Arab Emirates will spur growth in Türkiye's digital banking sector and encourage new investments from the Gulf region.

The Turkish Central Bank and the Central Bank of the UAE inked three pacts to strengthen financial ties and promote bilateral trade through a Turkish lira-UAE dirham swap arrangement.

The swap carries a nominal value of 198 billion Turkish lira ($4.7 billion) and 18 billion dirhams ($4.9 billion). The banks also agreed separately to encourage the use of local currencies for cross-border payments and to link their payment and messaging systems.

İsmet Demirkol, an economist at Istanbul’s Bahçesehir University and founder of consultancy firm Pariterium, told Anadolu Agency that the deal will accelerate digital banking adoption in Türkiye and help integrate the country’s financial sector into the “new world order.”

He expects a more digital future and says the swap agreement will attract investment in digital technology and banking innovation.

He added that future swap deals could also spur investment in green, wind, solar and hydrogen energy.

Demirkol added that agreements such as the Türkiye–UAE swap could reduce Türkiye’s foreign dependency and potentially help the country move toward a current account surplus.

Filiz Eryilmaz, associate professor of economics at Bursa Uludağ University, told Anadolu that the swap will help strengthen the Central Bank’s foreign exchange reserves, supporting financial stability.

“Türkiye and the UAE already have strong trade relations — this deal is a positive step to attract more capital from Gulf countries,” she said. “It is a win for both trade and capital inflows.”