UAE-China currency swaps hit Dh25.7B

dubai — Currency swaps through the Renminbi Clearing Centre in the UAE reached $7.01 billion (Dh25.7 billion; RMB44.57 billion) during the first 11 months of 2018, the Central Bank said in a statement on Tuesday.

The Renminbi Clearing Centre was established after the UAE and China signed a bilateral currency swap agreement in 2015. Established on May 10, 2017, the Centre has become increasingly important as the UAE and Chinese governments deepen their cooperation to further the ‘Belt and Road Initiative’ and work towards establishing sustainable trade and investment partnerships. The Central Bank said that despite good achievement, the transaction clearance level is still low compared to the aspirations of the 2 countries in this area. Mohamed Ali bin Zayed Al Falasi, deputy governor of the Central Bank, said the UAE is commited to improving the Renminbi clearing arrangements in the UAE to further trade and investment relationships with China.

“We are entering a new era with the ‘Belt and Road Initiative’. The bilateral economic and trade cooperation will move towards a higher level and the Centre will provide a solid foundation for enhanced economic activity between our 2 countries going forward. In the future, ABC will further enhance its financial service capabilities in the UAE and offer full support to the RMB Clearing Centre, and actively participate and promote the development of the RMB market in the UAE,” said Wanfu Zhou, secretary of the board of directors of Agricultural Bank of China.

The UAE is commited to improving the Renminbi clearing arrangements in the UAE to further trade and investment relationships with China

Mohamed Ali bin Zayed Al Falasi, Deputy governor, UAE Central Bank