Maldives Begins to Work on Establishing Chinese Bank, Says Minister Saeed

Minister of Economic Development and Trade Mohamed Saeed announced today that work has commenced on establishing a Chinese bank in the Maldives. 

The announcement was made during the inauguration of the “Maldives-Sichuan Trade and Investment Cooperation Conference”.

advertisement

advertisement

advertisement

Minister Saeed highlighted the significant business opportunities in the Maldives, emphasising that the establishment of the bank is part of a broader free trade agreement between the Maldives and China. This agreement, set to be implemented in September, promises numerous benefits for both nations.

https://x.com/MoEDmv/status/1820744216752050325

Relevant legislation has already been passed to facilitate the agreement’s implementation. A key feature of the agreement is the introduction of a “local currency settlement” system, allowing Maldivian businesses to import goods from China using the Maldivian Rufiyaa instead of USD.

Minister Saeed stated, “The most urgent task is to enable businesses from both countries to conduct transactions using their respective currencies. An agreement between the People’s Bank of China and the Maldives Monetary Authority (MMA) is also underway.”

He explained that converting dollar demand into Maldivian Rufiyaa and Chinese Yuan would ease the import of vegetables, fruits, construction materials, and technology items.

https://x.com/MoEDmv/status/1820755043878068241

Currently, the Maldives imports goods worth USD 700 million from China each year, including USD 19 million from Sichuan province alone.

The conference, attended by over 100 participants from Sichuan Province and the Maldives, aims to strengthen business relations and provide Chinese companies with information on investment opportunities in the Maldives.