Minister of Economic Development and Trade Mohamed Saeed has held discussions with the People’s Bank of China to explore ways to facilitate trade using the currencies of both countries. This discussions were held during Minister Saeed’s official visit to China, reflecting the Maldives’ strategic focus on enhancing bilateral trade relationships.
Minister Saeed highlighted that President Dr. Mohamed Muizzu and the Maldivian government are prioritising currency settlement arrangements with major trading partners. The aim is to simplify and boost trade by using local currencies. As part of this effort, Minister Saeed engaged in discussions with the People’s Bank of China to explore the feasibility of conducting business transactions using the Maldivian rufiyaa and the Chinese yuan.
On June 25, Minister Saeed met with Chinese Commerce Minister Wang Wentao to establish a currency settlement system between China and the Maldives. He expressed confidence that using local currency for transactions would enhance the value of the Maldivian rufiyaa.
During President Dr. Muizzu’s official visit to China last January, several key trade and development agreements were signed, including the Blue Economy Corporation Agreement, the Digital Sector Development Agreement, and the Belt and Road Corporation Agreement. These agreements aim to foster economic growth and cooperation between the two nations.
Additionally, the Maldives signed a free trade agreement with China in 2017. However, its implementation was delayed by the previous administration. President Muizzu’s government has committed to enforcing the free trade agreement with China this year.
The Maldives imports approximately USD 700 million worth of goods from China annually, underscoring the importance of effective currency settlement systems for facilitating and optimising trade relations between the two countries.