Currency swaps through Renminbi Clearing Centre boost UAE – China Trade: CBUAE

ABU DHABI, Currency swaps between the UAE and China through the Renminbi (RMB) Clearing Centre grew consistently, increasing a further 42 per cent in 2018, compared to levels recorded at the end of 2017,according to figures released by the Central Bank of the UAE (CBUAE) on Wednesday.

As part of joint efforts to foster a closer trading relationship and develop increased investment opportunities, the CBUAE and the People’s Bank of China signed a bilateral currency swap agreement and an MoU to establish a Renminbi (RMB) Clearing Centre in the UAE in December 2015.

Growing transfers through the Centre reflect the continued overall growth in trade between the two countries. China is the UAE’s largest trading partner, accounting for 12 per cent of total imports to the UAE, with a total value of AED 79.9 billion in 2017, a growth of 14.7 per cent from 2016. China accounted for 3.3 per cent of total UAE non-oil exports with a total value of AED 5.1 billion in 2017. The UAE also hosts over 4,000 Chinese firms operating in the UAE and a large community of Chinese expats.

Mubarak Rashed Al Mansoori, UAE Central Bank Governor, said, “The UAE and China are exploring numerous ways to further promote bilateral ties and strengthen cooperation across different sectors including economic, trade, investment, education, tourism and renewable energy. The RMB Clearing Centre, jointly established by the CBUAE and the People’s Bank of China, has greatly enhanced the ability of our two nations to trade efficiently as reflected by the growing value of trade, investments and other financial flows. The establishment of the Centre has facilitated the clearing process and increased the attraction of the UAE market for Chinese investors and companies to trade in the UAE and vice versa. China is our largest trading partner, indeed, our trade and investments relationship with China continue to grow rapidly, as evidenced by the growing trade and clearing values.”

Aside from cross-border clearing and remittance services, the RMB Clearing Centre also provides RMB buying and selling, money market lending and international trade support between the UAE and China. These services have strengthened the ability of local and international financial institutions and economic stakeholders in both countries to do business more efficiently.

Source: Emirates News Agency