A Memorandum of Understanding (MoU) has been signed today which allows current account transactions in local currency between China's central bank People's Bank of China and the Government of Maldives.
A Memorandum of Understanding (MoU) has been signed today which allows current account transactions in local currency between China's central bank People's Bank of China and the Government of Maldives.
A statement released by the Ministry of Economic Development and Trade states that this MoU paves the path to increase investment and business opportunities between the countries through setting up a system wherein current account transactions and direct investments can be made in the local currencies of both countries.
The MoU would offer convenience in local currency transactions, and as such ease imports from China for Maldivian businesses and increase cross border investments between the countries, the statement said.
The Economic Ministry said that the signing of this MoU falls within the vision of President Dr Mohamed Muizzu to broaden economic opportunities and strengthen business relations with international actors.
As per the most recent statistics, approximately USD 700 million worth business transactions are made between Maldives and China.
At present, China is also at the top of the list of countries from which the most tourist arrivals to Maldives are recorded. As of last week, over 200,000 Chinese tourists have come to the Maldives within this year.
In addition to China, the government is also working on coming to an agreement with India to allow local currency transactions.
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