The Central Bank of the UAE (CBUAE) and the People’s Bank of China signed an agreement to renew the currency swap between the UAE and China.
The two banks also signed an MoU to enhance technical and technological cooperation in developing central bank digital currencies.
“The signings will enhance the strategic partnership between the two friendly nations and expand the bilateral relations in the financial and economic fields,” it was said.
The renewal of the currency swap agreement between the two countries, which has a nominal value of Dh18 billion, for the next five years aims to promote financial and trade cooperation between the UAE and China by facilitating the provision of liquidity in local currency to financial markets for the settlement of cross-border financial and trade transactions.
The MoU aims to enhance collaboration on central bank digital currency development and strengthen cooperation between CBUAE and the Digital Currency Institute of the People’s Bank of China in financial technology. The MoU will also support the implementation of joint initiatives and projects. One of them is the “mBridge” project, a multi-central bank digital currencies platform that instantly and securely facilitates cross-border trade payments.
“The renewal of the currency swap agreement between our two countries and the memorandum of understanding with our partners in China reflect the depth of the relationship between the UAE and China, embodying the Central Bank’s commitment to solidifying the partnership with our Chinese counterpart in financial, trade and investment fields,” said Khaled Mohamed Balama, Governor of CBUAE.
