The Free Trade Agreement (FTA) with China will increase trade to USD 1 billion, Chief Spokesperson Heena Waleed said on Monday.

The Maldivian government and China’s central bank, the People’s Bank of China, on Friday signed an agreement to facilitate current account transactions and direct investments in both countries’ currencies.

Speaking at a press conference at the President's Office today, Heena said the FTA will bring huge benefits to the Maldivian government, people, and businesses in general.

"There is already USD 700 million in trade with China. However, with the current FTA with China and also with the implementation of this FTA, this trade figure is rising to USD 1 billion," she said.

Heena said the agreement will enable the people to pay in Malddivian currency for transportation and services instead of paying in dollars.

"We will be less dependent on the dollar for purchasing goods and it will be easier for businessmen and also holidaymakers to do their transactions in Maldivian Rufiyaa. Many such things have been facilitated," she said.

The government has arranged for Rufiyaa transactions with China and is in talks to arrange a similar arrangement with India, Maldives' largest trading partner.