The Central Bank of the UAE (CBUAE) and People’s Bank of China renewed their currency swap agreement yesterday for an additional five years, CBUAE said in a statement. The new agreement is valued at AED 18 bn (CNY 35 bn). The renewal provides local currency liquidity, making it easier for markets to settle cross-border commercial and financial transactions.

Remember: The UAE and China signed their first currency swap in 2012. The nations’ central banks have continued to renew the agreement to expand bilateral relations in financial and economic fields.

An MoU on digital currencies was also signed: A new MoU between the UAE and China will enhance digital currency development for central banks, according to the CBUAE press release. The MoU will prompt bilateral cooperation to train and develop the technical skills of specialists on both sides and support joint initiatives like the “m-bridge” project, which uses digital currencies for international fund transfers.

Tags: