Economic Development Minister Mohamed Saeed and Chinese Commerce Minister Wang Wentao have held discussions on establishing a currency settlement system between China and the Maldives, aiming to enhance economic ties. The talks took place during the 15th World Economic Forum at the Dalian Congress Hall in Dalian Province, China.
The meeting focused on furthering the discussions previously held between President Dr Mohamed Muizzu and his Chinese counterpart, President Xi Jinping, during President Muizzu’s recent visit to China. These discussions centred on bolstering trade and economic relations between the two nations.
One of the key topics was the expedited implementation of the Free Trade Agreement (FTA) signed between China and the Maldives, which is set to come into force this year. The ministers emphasised the importance of the FTA in enhancing bilateral trade and economic cooperation.
Additionally, the establishment of a currency settlement system was a focal point of the discussions. This system aims to facilitate smoother trade transactions between the two countries, allowing the use of the Maldivian Rufiyaa and Chinese Yuan for bilateral trade. Minister Saeed highlighted that such an arrangement would boost the value of the Maldivian Rufiyaa by enabling direct currency transactions through banks.
The Maldivian government has prioritised entering into currency settlement arrangements with major trading partners to simplify and enhance trade activities. Minister Saeed expressed confidence that these measures would significantly benefit the Maldivian economy.
During his official visit to China in January, President Muizzu signed several trade and development agreements, including the Blue Economy Corporation Agreement, the Digital Sector Development Agreement, and the Belt and Road Corporation Agreement. These agreements aim to further solidify the economic partnership between the Maldives and China.
China remains a key trading partner for the Maldives, with substantial imports contributing to the economic relationship between the two nations. The introduction of a currency settlement system and the enforcement of the FTA are anticipated to drive further growth and stability in bilateral trade.
