Ministry of Economic Development and Trade of the Maldives has announced the signing of a Memorandum of Understanding (MoU) with the People's Bank of China (PBOC) to establish a framework for current account transactions and direct investments in their respective currencies.
The agreement aims to facilitate smoother and more efficient trade and investment relations between the Maldives and China by promoting the settlement of transactions in local currencies. This step is expected to enhance convenience for traders and increase cross-border investments between the two nations.
The MoU follows the state visit of President Dr. Mohamed Muizzu to China in January 2024, where he met with President Xi Jinping to discuss strengthening the comprehensive strategic partnership between the Maldives and China. Their discussions highlighted a mutual commitment to deepening economic cooperation.
China, one of the Maldives' largest trade partners with bilateral trade exceeding USD 700 million, and the top source of tourists to the Maldives, stands to benefit significantly from this agreement. The MoU aligns with President Dr. Muizzu’s vision of enhancing economic openness and fortifying trade relations with key international partners.
The signing of this MoU represents a major milestone in bolstering economic ties and fostering increased trade and investment flows between the Maldives and China.