Maldives and China have held discussions to establish a currency settlement system between the both countries. The discussions took place between Maldivian Minister of Economic Development Mohamed Saeed and Chinese Minister of Commerce Wang Wentao during Minister Saeed’s ongoing visit to China.
Minister Saeed departed for China on June 23 to participate in the opening of the World Economic Forum Annual Meeting of the New Champions 2024 in Dalian, China. His meeting with the Chinese Commerce Minister was held on the sidelines of the forum.
In their meeting, Minister Saeed and Minister Wang furthered the trade and economic talks previously held between President Dr. Mohamed Muizzu and Chinese President Xi Jinping during the President’s state visit to China. They discussed expediting the implementation process of the Free Trade Agreement signed between the Maldives and China and establishing a currency settlement system to facilitate trade and communication between the two countries.
Had a constructive meeting with Minister of Commerce of PRC.Reflected on the meeting between President Xi Jingping & Pres Dr @MMuizzu & discussed options for deepening trade & investment
— Mohamed Saeed (@em_saeed) June 25, 2024
co-operation between our two countries 🇲🇻🇨🇳@MoEDmv @presidencymv @MFA_China @China_Amb_Mdv pic.twitter.com/9k3tpEi2dA
Chinese Ambassador to the Maldives, Wang Lixin, expressed that this meeting would help facilitate the implementation of the important consensus reached between President Xi Jinping and President Dr. Muizzu. The Ministry of Economic Development noted that President Dr. Muizzu and his administration prioritize establishing currency settlement arrangements with key markets where the Maldives conducts substantial commercial transactions.
Minister Saeed had earlier noted that using the Maldivian rufiyaa for transactions with China would help increase the currency's value.
During his official visit to China last January, President Dr. Muizzu signed several trade and development agreements, including the Blue Economy Cooperation Agreement, the Digital Sector Development Agreement, and the Belt and Road Cooperation Agreement.
In 2017, the Maldives signed a free trade deal with China, which the previous administration postponed implementing. However, the current administration has stated that the free trade agreement with China will go into effect this year.
The Maldives spends around USD 700 million annually on imports from China.