China and Maldives Sign MoU for Local Currency Transactions

The People’s Bank of China and the Government of Maldives have signed a Memorandum of Understanding (MoU) to facilitate current account transactions in local currencies. This agreement aims to promote business and investment opportunities between the two countries.

A statement from the Ministry of Economic Development and Trade highlighted that the MoU establishes a framework for conducting current account transactions and direct investments in the local currencies of both nations. This move is expected to simplify local currency transactions, making imports from China easier for Maldivian businesses and boosting cross-border investments.

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Reflecting the visionary leadership of HEP @MMuizzu, the People’s Bank of China and Ministry of Economic Development & Trade signed MoU to establish a Local Currency Settlement framework aimed at bolstering bilateral trade, investment between two countries. This will immensely… pic.twitter.com/ICuLJu9giy— Ministry of Economic Development and Trade (@MoEDmv) September 13, 2024

The Ministry also noted that the agreement aligns with the vision of President Dr Mohamed Muizzu to expand economic opportunities and enhance business ties with international partners.

According to recent statistics, business transactions worth approximately USD 700 million are conducted annually between Maldives and China. Additionally, China remains the leading source of tourists for the Maldives, with over 200,000 Chinese visitors arriving so far this year.

The Maldivian government is also in discussions with India to establish a similar arrangement for local currency transactions.