Efforts underway to establish Chinese bank in Maldives

The Minister of Economic Development and Trade Mohamed Saeed said on Tuesday, that the Maldives government has begun efforts to establish a Chinese bank in the country.

While speaking at the opening ceremony of the "Maldives-China (Sichuan) Trade and Investment Corporation Conference,"  Saeed said that besides the work on establishing this new bank, the Maldives will effectively begin implementing the free trade agreement (FTA) signed between the Maldives and China earlier.

The minister also highlighted relevant statutes that have already been put into effect to ensure the implementation of the FTA  and noted that the agreement would provide insight into areas of investment and growth for local businesses and entrepreneurs.

Saeed said the government will host workshops to disseminate this information to the relevant stakeholders.

The FTA encompasses a "currency settlement" agreement between the two countries to use Maldivian rufiya and Chinese yuan in transactions instead of relying on US dollars, thereby shifting demand from the dollar to the yuan. 

"One of our top objectives is to allow businesses in both countries to use their native currencies for transactions. The People's Bank of China and MMA are currently discussing this," Saeed said.

The minister said the Maldives will receive unprecedented benefits from its FTA with China.

More than MVR 19 million worth of goods are imported from China's Sichuan alone, which makes the FTA a significant advancement for Maldivian entrepreneurs, according to Saeed.