Economic Development Minister Announces Chinese Bank Establishment in Maldives

Work has commenced to establish a Chinese bank in the Maldives, as announced by Minister of Economic Development and Trade Mohamed Saeed. Speaking at the "Maldives-Sichuan Trade and Investment Cooperation Conference," Minister Saeed emphasized the potential business opportunities in the Maldives and the numerous benefits of the upcoming free trade agreement (FTA) with China.

The Minister highlighted that the FTA, set to be implemented in September, will offer significant advantages to Maldivian businesses. The necessary laws for its implementation have already been passed. One key feature of the agreement is the "local currency settlement" between the Maldivian Rufiyaa and the Chinese Yuan, which will allow Maldivian businesses to import goods from China using local currency instead of USD.

"The most urgent task is to enable businesses from both countries to conduct transactions using their respective currencies," Minister Saeed stated. He also mentioned that an agreement between the People's Bank of China and the Maldives Monetary Authority (MMA) is in progress to facilitate this process.

Minister Saeed explained that converting dollar demand into Maldivian Rufiyaa and Chinese Yuan would streamline the import of essential goods such as vegetables, fruits, construction materials, and technology items. This initiative aims to ease financial transactions and promote economic cooperation between the two countries.

The establishment of a Chinese bank in the Maldives marks a significant step in strengthening bilateral economic ties. It is expected to enhance the ease of doing business and open up new avenues for trade and investment. The bank, coupled with the FTA, will create a more favorable business environment, fostering growth and development in the Maldivian economy.

The Maldives-Sichuan Trade and Investment Cooperation Conference served as a platform to discuss these developments and explore further opportunities for collaboration between Maldivian and Chinese businesses. The ongoing efforts to establish a Chinese bank and implement the FTA underscore the commitment of both nations to deepening their economic partnership.