Currency Swaps Through Renminbi Clearing Centre Boost UAE – China Trade
Abu Dhabi, UAE, 19 July 2018: As part of joint efforts to foster a closer trading relationship and develop increased investment opportunities, the Central Bank of the UAE 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. Swaps through the Center grew consistently, increasing a further 42% in H1 2018, compared to levels recorded at end of 2017.
Growing transfers through the Center reflect the continued overall growth in trade between the two countries. China is the UAE’s largest trading partner, accounting for 12% of total imports to the UAE, with a total value of AED 79.9 billion in 2017, a growth of 14.7% from 2016. China accounted for 3.3% 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 in the United Arab Emirates.
H.E. 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 Center 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 & 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.
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