IDB and Arab Monetary Fund Partner to Advance Finance and Sustainability Goals

At the heart of the agreement are three critical pillars of cooperation: payment systems, climate finance and carbon markets, and public sector asset management.

In a landmark agreement poised to reshape regional financial cooperation, the Inter-American Development Bank (IDB) and the Arab Monetary Fund (AMF) have signed a comprehensive memorandum of understanding (MoU) aimed at enhancing collaboration on strategic financial development priorities. The partnership brings together two major financial institutions from Latin America, the Caribbean, and the Arab region, united in their vision to build resilient, innovative, and sustainable economic systems.

Expanding the Frontier of Financial Connectivity

At the heart of the agreement are three critical pillars of cooperation: payment systems, climate finance and carbon markets, and public sector asset management. Each area represents a cornerstone for the evolution of modern financial ecosystems across both regions.

1. Interoperable Payment Systems: Bridging Borders

One of the most impactful components of the MoU is the intensified collaboration between the AMF’s regional cross-border payment system, Buna, and the IDB’s FUSSE initiative—a financial infrastructure project currently operating at the domestic level. The two institutions will work to harmonize technical standards and regulatory frameworks, enabling secure and efficient real-time payment solutions across borders.

This includes coordinated technical assistance missions, capacity-building programs, and joint research initiatives that will help align digital infrastructure between the Arab world and Latin America. As regional and global trade and investment flows become increasingly interconnected, this initiative is expected to reduce transaction costs and settlement times while improving financial inclusion and accessibility.

2. Climate Finance and Carbon Markets: Greening the Financial Landscape

Recognizing the critical need for climate action, the IDB and AMF have pledged to advance their joint work on climate finance mechanisms, carbon pricing instruments, green taxonomies, and fiscal incentives designed to promote low-carbon transitions.

Through this collaboration, the two institutions will contribute to global discourse in the run-up to COP30, participating in high-impact events such as the AMF’s Green Finance Meeting and IDB-hosted climate forums. By consolidating their efforts in this field, the IDB and AMF aim to catalyze investments in sustainable infrastructure, promote emissions transparency, and bolster regional capacities in implementing green finance solutions.

3. Modernizing Treasury Functions through the CAsA Program

A significant aspect of the MoU lies in the Public Sector Asset Management (CAsA) Program, which will focus on modernizing treasury and asset management practices across the public sector. With an emphasis on enhancing institutional capacity and managing complex financial instruments, the program will facilitate secondments of experts, technical workshops, and customized advisory services.

The effort seeks to empower public finance officials with the tools and expertise necessary to optimize asset portfolios, strengthen risk management frameworks, and increase operational efficiency.

Leadership Vision and Regional Impact

“This agreement represents a significant milestone in strengthening ties between Latin America and the Caribbean and the Arab world. By partnering with the Arab Monetary Fund, we’re deepening cooperation on real-time payment systems, advancing joint research on carbon markets and climate finance, and public sector asset management through treasury modernization,” said IDB President Ilan Goldfajn.

His counterpart, Dr. Fahad M. Alturki, Director General and Chairman of the Board of the AMF, echoed the sentiment: “Our collaboration with the Inter-American Development Bank reflects a shared commitment to advancing financial innovation, institutional development, and economic sustainability across our regions. This partnership will further enable us to exchange expertise, enhance cross-regional dialogue, and deliver impactful capacity-building initiatives.”

A Platform for Lasting Change

The MoU lays the groundwork for a series of strategic engagements, including knowledge-sharing events, policy dialogues, and coordinated technical support, all designed to foster innovation, improve governance, and stimulate investment in sustainable development.

This inter-regional partnership marks a forward-looking step toward harmonizing global financial practices while addressing the urgent need for sustainable economic development. Through collaborative action, the IDB and AMF aim to shape a resilient financial future for both Latin America and the Arab region.