The Minister of Economic Development and Trade, Mohamed Saeed, has announced that efforts are underway to open a branch of a Chinese bank in the Maldives. This initiative was revealed during the Maldives-Sichuan Trade and Investment Cooperation Conference, aiming to enhance bilateral trade relations and provide new business opportunities for both nations.
Speaking at the conference, Minister Saeed highlighted the imminent implementation of the free trade agreement between the Maldives and China, set to commence next month. He emphasised the importance for Maldivian businesses to be aware of the opportunities presented by this agreement and disclosed plans to hold workshops to provide relevant information to businessmen. The minister assured that the Maldives would experience several benefits from the agreement, which includes enabling local currency settlements between the Maldivian Rufiyaa and the Chinese Yuan, reducing the reliance on the US dollar for trade transactions.
“The most urgent task is to enable businesses from both countries to conduct transactions using their respective currencies,” said Minister Saeed. He also mentioned that an agreement between the People’s Bank of China and the Maldives Monetary Authority (MMA) is underway to facilitate this process.
Minister Saeed further noted that the government is committed to maximising the benefits for businesses through these initiatives. He stated that establishing a branch of a Chinese bank in the Maldives is a key step in this direction, with preparations already in progress. Allowing trade transactions in local currency is expected to facilitate the import of goods such as vegetables, fruits, construction materials, and technology items from China.
Highlighting the trade opportunities, Minister Saeed mentioned that the Maldives currently imports goods worth USD 700 million from China annually, with USD 19 million sourced from Sichuan Province alone.
The Maldives-Sichuan Trade and Investment Cooperation Conference aims to strengthen bilateral relations and was attended by over 100 participants from Sichuan Province and the Maldives, including Chinese Ambassador to the Maldives Wang Lixin, Minister Saeed, and other Cabinet members. The conference serves as a platform to enhance business relations and provide Chinese companies with information on investment opportunities in the Maldives.
With these initiatives, the Maldives is poised to create a favourable environment for trade activities, ensuring that businesses from both countries can reap the benefits of closer economic cooperation.
