Facilitating bilateral trade and direct investment

The Central Bank of Seychelles (CBS) and the Central Bank of the United Arab Emirates (CBUAE) have signed two memoranda of understanding aimed at improving the use of local currencies in the settlement of cross-border financial and commercial transactions by interconnecting the payment and messaging systems between the two countries.

According to a joint press release from the CBS and the CBUAE, the memoranda were signed in Abu Dhabi on July 18 by CBS Governor Caroline Abel and CBUAE Governor Khaled Mohamed Balama. The first memorandum establishes a framework to promote the use of local currencies in bilateral commercial transactions, develop the foreign exchange market, facilitate bilateral trade and direct investment, the settlement of remittances, and the development of the financial market.

The second memorandum consolidates cooperation and mutual interest in instant payment platforms, electronic switches, and messaging systems by directly linking them to the regulatory requirements of both countries. The CBS governor stated that for small open island economies like Seychelles, the importance of an efficient financial system to facilitate trade is very significant.

« In this regard, the memoranda signed between our two central banks, guided by the relevant and applicable laws to preserve the soundness and integrity of our respective financial systems, can contribute to this effort ». The opportunity to collaborate on the interconnection of payment and messaging systems will facilitate the processing and settlement of cross-border financial transactions between the two countries.