China-Maldives MoU Opens Doors for Local Currency Trade

In a significant development, China's central bank, the People's Bank of China, and the Government of Maldives have signed a Memorandum of Understanding (MoU) allowing for local currency transactions between the two nations. This new agreement is set to streamline current account transactions and facilitate direct investments in both currencies.

The Ministry of Economic Development and Trade of Maldives highlighted that this MoU will greatly ease business operations by simplifying import processes from China and promoting cross-border investments. The initiative aligns with President Dr. Mohamed Muizzu's vision to expand economic opportunities and strengthen international business relations.

Currently, the trade volume between Maldives and China stands at approximately USD 700 million. China is also a major source of tourism for the Maldives, with over 200,000 Chinese visitors recorded this year alone.

The Maldivian government is also exploring similar agreements with India to further bolster local currency transactions. This strategic move is expected to enhance economic interactions and provide new avenues for growth and collaboration.