UAE and China Strengthen Financial Ties, Renew Currency Swap Deal, and Commit to CBDC Development
HONG KONG – UAE and China Extend Currency Swap Agreement
The United Arab Emirates and China have deepened their financial collaboration by renewing a significant currency swap agreement and committing to further cooperation on Central Bank Digital Currency (CBDC) development. The Central Bank of the UAE (CBUAE) and the People’s Bank of China have extended their currency swap arrangement, valued at Dh18 billion or 35 billion yuan, for an additional five years. This move aims to enhance liquidity in both nations’ currencies and strengthen their financial ties.
Collaboration on CBDC Projects and Cross-Border Payments
In a ceremony in Hong Kong, Khaled Mohamed Balama of the CBUAE and Pan Gongsheng from the People’s Bank of China also signed a Memorandum of Understanding (MoU) to collaborate on CBDC projects, such as “mBridge.” This initiative is designed to enable secure and instantaneous cross-border payments. The MoU includes a commitment to share expertise in digital currencies and the implementation of technology-driven financial solutions to stimulate economic growth.
Measures for Financial Technology Specialists and Economic Expansion
The agreement also includes measures for training financial technology specialists and organizing bilateral visits to discuss shared financial interests. These visits aim to further economic expansion by leveraging technological advancements in the finance sector. The collaboration highlights the growing importance of digital currency innovation and the commitment of both nations to remain at the forefront of this rapidly evolving domain.
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