An agreement between the Central Bank of the United Arab Emirates and a Chinese cross-border payment system illustrates a shared desire for growth in both markets.
The Central Bank of the United Arab Emirates (CBUAE) has signed a major agreement with the Chinese payment system CIPS to streamline financial exchanges between the countries. This strategic collaboration comes at a time when trade relations between the Emirates and China are growing rapidly.
In concrete terms, this agreement will allow Emirati and Chinese banks to make payments in local currencies without going through third currencies, such as the dollar. The result: faster transactions, lower costs, and greater flexibility for companies operating between these two markets.
Mr. Saif Al Dhaheri, Deputy Governor of the CBUAE, said that this partnership "will help reduce costs, develop innovative financial solutions, and stimulate economic growth." Meanwhile, Mr. Xiangyang Wu, Vice President of the Cross-Border Interbank Payment System (CIPS), hailed the initiative "an opening towards many opportunities to strengthen relations between the two countries (...) and support the continued prosperity of both our economies."
Beyond bilateral issues, this agreement is part of a broader desire to further connect the Middle East/North Africa region to China and strengthen the position of their currencies, the dirham and the yuan, on the global stage. It is another step towards a more modern, independent, and efficient financial system.
In short, this alliance marks a shared desire to adapt financial exchanges to contemporary challenges by combining speed, security, and sovereignty.
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