The flags of China and Maldives.
Credit: iStock Photo
Male: Maldives on Tuesday said it has begun efforts to establish a Chinese bank in the country and announced that the implementation of the FTA between the archipelago nation and China is set to commence in September.
Maldives’ Minister of Economic Development and Trade Mohamed Saeed was speaking here at the inauguration of the ‘Maldives-Sichuan Trade and Investment Cooperation Conference’ when he highlighted the potential business opportunities in the Maldives.
Relevant laws have already been passed for the implementation of the Free Trade Agreement (FTA), under which a ‘local currency settlement’ between the Maldivian Rufiyaa and the Chinese Yuan would enable Maldivian businesses to import goods from China using local currency instead of USD, news portal Edition.mv said quoting Saeed.
“Work has begun to establish a Chinese bank in the Maldives. In addition to it, the free trade agreement between the Maldives and China would offer numerous benefits, with the agreement's implementation set to commence in September,” Saeed said.
“The most urgent task is to enable businesses from both countries to conduct transactions using their respective currencies. An agreement between the People's Bank of China and the Maldives Monetary Authority (MMA) is also underway,” he added.
The minister also explained how converting the dollar demand into Maldivian Rufiyaa and Chinese Yuan would facilitate the import of vegetables, fruits, construction materials, and technology.
The Maldives currently imports goods worth $700 million from China each year, including $19 million from Sichuan province alone, Edition.mv said.
The conference, attended by over 100 participants from Sichuan Province and the Maldives, aims to enhance business relations and provide Chinese companies with information on investment opportunities in the Maldives.
Maldives is also working out a similar Rupee-Rufiyaa arrangement with India.
In July, Maldives’ Foreign Minister Moosa Zameer undertook an official visit to China from July 20 to 24 at the invitation of Wang Yi, Member of the Political Bureau of the CPC Central Committee, Director of the Office of the Central Commission for Foreign Affairs and China’s Minister for Foreign Affairs.
During the visit, apart from political leaders, Zameer also held discussions with key Chinese companies, which Maldives said, “have played a pivotal role in the economic development of the Maldives.” Zameer's visit to China came amid a downturn in the bilateral ties between India and Maldives since pro-China president Mohamed Muizzu assumed office last November.
President Muizzu himself had visited China within weeks of his swearing-in. On his insistence, India withdrew its military personnel manning three aviation platforms used for medical evacuation by May 10.