The Minister of Economic Development and Trade, Mohamed Saeed said on Tuesday, that the Maldives government is looking into establishing a Chinese bank in the country.
He said this at the opening ceremony of the “Maldives-China (Sichuan) Trade and Investment Corporation Conference.” At the conference, Saeed said that besides this bank, Maldives is currently working to implement the free trade agreement (FTA) signed with China.
Saeed said relevant laws are now in place to ensure implementation of the FTA and said the agreement would enhance commerce and trade avenues for businesses of both China and the Maldives.
Plans are also in place to host workshops to provide insights to relevant stakeholders, Saeed added.
The FTA features a “currency settlement,” which would allow for the use of Maldivian rufiyaa and Chinese yuan in transactions. Saeed said the currency settlement would shift the reliance and subsequent demand from US dollars to yuan.
“One of our top objectives is to allow businesses in both countries to use their native currencies for transactions. The People’s Bank of China and MMA are currently discussing this,” Saeed said.
More than MVR 19 million worth goods are imported from China’s Sichuan alone. The FTA’s currency settlement ease would allow Maldivian businesses to use their native currency to pay for imports without relying on exchanging the currency to US dollars.
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