(MENAFN) The United Arab Emirates Central Bank said that it is aiming to active the USD5.7 billion currency swap deal it made with China's central bank soon, Gulf Business reported.
The agreement, which was signed by the two central banks, is designed to facilitate two-way trade and investment and to permit the central banks to swap their currencies if needed.
The activation of this deal follows Qatar signing a similar currency swap deal with Beijing last month and saying that it would become the Middle East's first hub for clearing transactions in the Chinese currency.
"Right now we are in the process of activation of the swap. It has not been activated yet. There is an official communication. The process could be completed in coming months," Assistant Governor for Monetary Policy and Financial Stability at the UAE central bank said.
The UAE central bank said that this deal would not result in diversifying their foreign currency, 99 percent of which is in the American Dollar, saying that their foreign currency assets have totaled USD89.3 billion.
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