Heena: Trade between Maldives-China to rise to USD 1B with implementation of FTA

The President’s Office’s chief spokesperson Heena Waleed states bilateral trade between Maldives and China will climb to USD 1 billion per year with the implementation of the Free Trade Agreement (FTA) executed between the two countries.

Speaking at a press conference held at the President’s Office on Monday, Heena remarked that the implementation of the FTA between Maldives and China will facilitate increased benefits for businesses and the general public.

Maldives and China already engage in bilateral trade amounting to approximately over USD 700 million Heena noted, adding the implementation of the FTA would see bilateral trade between Maldives and China will climb to USD 1 billion per year

She detailed that the implementation of the FTA will also offer additional advantages, including facilitating current account transactions using the currencies of both countries, encouraging direct investments, easing travel for Maldivians, and improving access to goods and services. 

One key benefit she highlighted was the ability to conduct transactions using the Maldivian Rufiyaa which would lessen the reliance on the USD for transportation and business-related transactions.

Notably, the government of Maldives signed a Memorandum of Understanding (MoU) with the People’s Bank of China (PBOC) on Friday which establishes the framework for the settlement of current account transactions and direct investment in local currencies.

Maldives and China signed the FTA after two years of negotiations in December 2014 – during President Abdulla Yameen Abdul Gayoom’s administration.