Maldives Fortifies Economic Ties with China Through Landmark MoU

The Maldives has signed an MoU with the People’s Bank of China to streamline trade and investment using local currencies. This is part of an effort to solidify economic relations between the two nations. Additionally, China’s Industrial and Commercial Bank of China (ICBC) may soon establish a branch in the Maldives.

The Maldives has secured a pivotal Memorandum of Understanding with the People's Bank of China to create a framework for current account transactions and direct investments in their respective currencies. This development may soon lead to the opening of a branch of China's biggest bank, ICBC, in the Maldives.

China stands to gain significantly from this agreement, given that it is one of Maldives' largest trade partners with a bilateral trade volume exceeding USD 700 million, and a top source of tourists. The MoU, signed between the Ministry of Economic Development and Trade of the Maldives and PBOC, is aimed at facilitating smoother and more efficient trade and investment relations.

Maldivian Economic Minister Mohamed Saeed confirmed ongoing negotiations to open an ICBC branch in the Maldives, highlighting the mutual commitment to deepening economic cooperation following President Mohamed Muizzu's state visit to China. Meanwhile, Maldives is completing formalities on a Free Trade Agreement with China, which will be activated upon mutual consent.

(With inputs from agencies.)