The Minister of Economic Development and Trade, Mohamed Saeed, announced ongoing efforts to open a branch of a Chinese bank in the Maldives. This initiative, revealed at the Maldives-Sichuan Trade and Investment Cooperation Conference, aims to enhance bilateral trade relations and provide new business opportunities for both nations.
Free Trade Agreement Implementation
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 emphasized the importance of Maldivian businesses being aware of the opportunities presented by this agreement and disclosed plans to hold workshops to provide relevant information to businessmen.
Currency Settlements and Benefits
Minister Saeed assured that the Maldives would experience several benefits from the agreement, including enabling local currency settlements between the Maldivian Rufiyaa and the Chinese Yuan, reducing 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. An agreement between the People’s Bank of China and the Maldives Monetary Authority (MMA) is underway to facilitate this process.
Government Commitment and Business Facilitation
The government is committed to maximizing benefits for businesses through these initiatives. 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.
Trade Opportunities
Minister Saeed highlighted the trade opportunities, noting that the Maldives currently imports goods worth USD 700 million from China annually, with USD 19 million sourced from Sichuan Province alone.
Conference Participation
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.
Conclusion
With these initiatives, the Maldives is poised to create a favorable environment for trade activities, ensuring that businesses from both countries can reap the benefits of closer economic cooperation. The opening of a Chinese bank branch and the implementation of local currency settlements mark significant steps towards enhanced bilateral trade relations.
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