Maldives and China Sign MoU for Local Currency Transactions

The Maldives and China have signed a Memorandum of Understanding (MoU) today, allowing current account transactions in local currencies between the People's Bank of China and the Maldivian government.

In a statement from the Ministry of Economic Development and Trade, it was highlighted that the MoU will facilitate increased investment and business opportunities between the two countries. The agreement sets up a system for conducting current account transactions and direct investments in the local currencies of both nations.

This new system is expected to provide significant convenience for Maldivian businesses by easing imports from China and fostering cross-border investments, according to the statement.

The signing of the MoU aligns with President Dr. Mohamed Muizzu’s broader vision to expand economic opportunities and strengthen international business ties.

Recent statistics show that the total business transactions between the Maldives and China amount to approximately USD 700 million annually. China remains one of the leading sources of tourist arrivals in the Maldives, with over 200,000 Chinese tourists visiting this year alone.

Additionally, the Maldivian government is in discussions with India to establish a similar local currency transaction agreement.