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UAE and China renew currency swap deal and commit to CBDC development

EditorRachael Rajan
Published 11/28/2023, 11:37 AM
© Reuters.

HONG KONG – The United Arab Emirates and China have reinforced their financial ties with the renewal of a significant currency swap agreement and a pledge to deepen collaboration on Central Bank Digital Currency (CBDC) development. The Central Bank of the UAE (CBUAE) and the People’s Bank of China have extended their currency swap arrangement, valued at Dh18 billion or 35 billion yuan, for an additional five years. This move is set to enhance liquidity in both nations' currencies and fortify the financial cooperation between the UAE and China.

In a ceremony today in Hong Kong, Khaled Mohamed Balama of the CBUAE and Pan Gongsheng from the People’s Bank of China also signed a Memorandum of Understanding (MoU) to collaborate on CBDC projects, such as "mBridge." This initiative is designed to enable secure and instantaneous cross-border payments. The MoU encompasses a commitment to share expertise in digital currencies and the implementation of technology-driven financial solutions to stimulate economic growth.

The agreement also includes measures for training financial technology specialists and organizing bilateral visits to discuss shared financial interests. These visits aim to further economic expansion by leveraging technological advancements in the finance sector. The collaboration highlights the growing importance of digital currency innovation and the commitment of both nations to remain at the forefront of this rapidly evolving domain.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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