- The UAE and China have renewed their agreement to swap currencies and signed a memorandum of understanding (MoU) to develop digital currencies backed by their central banks.
- The MoU, worth 18 billion dirhams for the next five years, aims to boost financial ties and trade between the two countries.
The Central Bank of the UAE and the People’s Bank of China recently made a big deal official. they’re renewing their agreement to swap currencies between their countries. On top of that, they put pen to paper on a memorandum of understanding (MoU) that’s all about joining forces on the technical side of things. They’re teaming up to develop digital currencies backed by their central banks.
This signing went down in Hong Kong and it’s a strategic move to beef up their relationship in the money and economic arenas. The renewed currency swap is worth a hefty 18 billion dirhams (that’s about 35 billion Chinese yuan) for the next five years. The goal? To boost financial ties and trade between the UAE and China.
This agreement makes it easier to use each other’s currencies for transactions between the two countries, making things smoother and more efficient when it comes to paying up.
But it doesn’t stop there. The MoU is all about kicking up collaboration a notch when it comes to developing digital currencies. They’re planning to team up on the tech side of things, with the CBUAE and the Digital Currency Institute of the People’s Bank of China working together on financial technology.
The plan is to share tips and tricks about digital currencies, team up on projects like the “mBridge” (it’s a platform that helps different digital currencies talk to each other for super-fast and secure payments), and even trade knowledge and skills through training sessions, visits, and discussions.
Khaled Mohamed Balama, the Governor of CBUAE, made it clear that these agreements are a big deal. He pointed out how close the UAE and China are and how these partnerships in financial innovation, especially in developing central bank digital currencies, are key to boosting their economies and societies.