Kong Xianhua, the Chinese Ambassador to the Maldives, has stated that the introduction of Chinese Yuan accounts in the Maldives will advance the Maldives-China Free Trade Agreement (FTA).

Chinese Yuan accounts were introduced in the Maldives at a ceremony held yesterday at the BML Head Office.

At the ceremony, Xianhua said that enabling Chinese Yuan account opening services at BML is something that will advance the FTA signed between the Maldives and China.

In September 2024, the People's Bank of China and the Ministry of Economic and Trade jointly signed a Memorandum of Understanding to facilitate the settlement of current account transactions and investment in local currencies.

This will expand the use of Maldivian currency and facilitate trade and investments.

Xianhua also noted that the China-Maldives Free Trade Agreement officially came into effect in January this year. He added that the introduction of this account is an important step towards implementing the Local Currency Settlement Agreement.

"Promoting local currency settlement is a significant advancement for the Maldives' economic trade. This will reduce exchange rate fluctuation risks, lower foreign exchange costs, and improve capital efficiency. This will provide businesses with easier and safer financial participation in cross-border transactions, and increase the independence and resilience of the financial system involved in cross-border transactions," the Chinese Ambassador said.

At the ceremony, BML CEO and Managing Director Mohamed Shareef said that UnionPay cards will be issued by BML starting from January 2026.

"It has been arranged to issue this card to individuals and businesses," he said.

This card is accepted in over 180 countries worldwide and can be used in the global payment network. This demonstrates the further strengthened financial ties between China and the Maldives.