The Government of Maldives on Friday signed a Memorandum of Understanding (MoU) with the People’s Bank of China (PBOC).

In a statement, Economic Ministry said the MoU establishes a framework for cooperation aimed at promoting the settlement of current account transactions and direct investments in local currencies, facilitating smoother trade and investment relations between the two countries.

The Ministry further said that during President Dr. Mohamed Muizzu's state visit to China in January this year, the President and Chinese President Xi Jinping discussed ways to strengthen comprehensive strategic cooperative partnership between the two nations.

As such, the signing of the MoU is a significant step in strengthening economic ties and boosting trade and investment flows between the two countries, the Ministry said.

According to Economic Ministry, this framework agreement is expected to facilitate more efficient currency settlements in local currencies, enhancing convenience for traders engaged in imports from China and promoting increased cross-border investments between the two countries. This framework agreement reflects President Dr. Muizzu's strategic vision to enhance economic openness and strengthen bilateral trade relations with key international partners.

China remains one of the Maldives' largest trade partners, with bilateral trade approximately over USD 700 million. Additionally, China continues to be the largest source market for tourists to the Maldives.