Minister of Fisheries and Ocean Resources Ahmed Shiyam has stated that the currency settlement agreement signed between the Maldives and China, will enhance the economic ties between the two nations.
Maldives signed 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. The government expects that this initiative will enhance convenience for traders and increase cross-border investments between the two nations.
In a social media post, Minister Shiyam stated that the agreement will serve as a strategic tool for the Maldives to strengthen its economic ties with China while enhancing its own economic stability. The minister added that the MoU will ensure easier settlement of trade in local currencies which can streamline processes for many businesses engaged in trade with China, and reduce the dependency on dollars.
Furthermore, Minister Shiyam remarked that the signing of the MoU symbolises a mutual commitment to strengthening diplomatic ties between the Maldives and China. The minister noted that it reflects the trust and cooperation between the leaderships of both nations, paving the way for future collaborations in various sectors.
The government is working to resolve issues pertaining to the international currency market in the Maldives. While it has signed a MoU with China, the government also plans to introduce globally recognised e-wallets to the Maldives as well.