Bank Al-Maghrib (BAM) and the Central Bank of the United Arab Emirates (CBUAE) have signed two Memoranda of Understanding (MoUs) to enhance cooperation in banking supervision and Islamic finance. The agreements were signed by BAM's Wali, Abdellatif Jouahri, and CBUAE's Governor, Khaled Mohamed Balama, in Abu Dhabi. The MoUs aim to strengthen bilateral cooperation and improve the efficiency of cross-border financial transactions between Morocco and the UAE.
The first MoU focuses on regulatory and prudential cooperation, information exchange, and coordination of practices and regulations. It also covers the exchange of expertise and capacity building in Islamic finance, including the development of cross-border Shariah-compliant financing for trade and infrastructure investments. This cooperation will enable both countries to better regulate and supervise their banking systems.
The second MoU explores the possibility of interconnecting instant payment platforms, national card switching systems, and financial messaging systems. This aims to facilitate the processing and settlement of cross-border transactions, allowing for the reciprocal acceptance of national payment cards. The agreement also covers cooperation on central bank digital currencies and their potential use in cross-border payments.
The agreements will also facilitate the exchange of expertise in developing central bank digital currencies for individuals and institutions. Additionally, they will explore the possibilities of using these currencies in cross-border payments between Morocco and the UAE. The cooperation will contribute to a more efficient and innovative financial sector.
According to Jouahri, the signing of the MoUs is an important step in consolidating the partnership between BAM and CBUAE. He noted that this partnership opens up new prospects for developing cross-border financial transactions and accelerating their processing. Balama also emphasized the importance of the agreements in expanding financial and banking cooperation between the UAE and Morocco.
The cooperation between the two central banks will support the growth of trade and economic relations between Morocco and the UAE. It will also enable both countries to benefit from each other's expertise in supervision, Islamic finance, and payment systems. The agreements reflect the commitment of both countries to strengthening their financial ties.
The MoUs are expected to contribute to the development of a more efficient and innovative financial sector in both countries. They will also support the growth of trade and economic relations between Morocco and the UAE. The agreements demonstrate the strong commitment of both countries to enhancing their financial cooperation.
Key points
- Morocco and UAE sign two MoUs to enhance cooperation in banking supervision and Islamic finance.
- The agreements aim to improve the efficiency of cross-border financial transactions between the two countries.
- The MoUs will facilitate the exchange of expertise in developing central bank digital currencies and their potential use in cross-border payments.
