On October 3, the Central Bank of the United Arab Emirates and Bank Al-Maghrib of Morocco signed two memoranda of understanding in Abu Dhabi. The agreements aim to strengthen cooperation in banking supervision and Islamic finance, as well as payment systems and financial technology. The memoranda were signed by Khalid Mohammed Al Maawali, Governor of the Central Bank of the UAE, and Abdellatif Jouahri, Governor of Bank Al-Maghrib.
The first memorandum focuses on payment systems, with both parties agreeing to explore the possibility of linking their instant payment platforms and national card schemes. This will facilitate the processing and settlement of cross-border financial transactions, allowing for the mutual acceptance of local payment cards, subject to regulatory rules in both countries. The agreement also includes cooperation on central bank digital currencies and their use in cross-border payments.
The second memorandum aims to enhance cooperation in banking supervision, through the exchange of information and expertise on banks and financial institutions. The parties will also coordinate on regulatory practices and systems, and develop institutional capacities. Additionally, the agreement includes cooperation in Islamic finance and Shariah governance, and the exchange of experiences related to developing Shariah-compliant finance.
The agreements reflect the growing cooperation between Morocco and the UAE in the financial sector. The two countries have been strengthening their economic ties in recent years, with a focus on promoting trade and investment. The memoranda of understanding are expected to facilitate the growth of financial transactions between the two countries.
The use of digital currencies is a key area of focus for both countries. Morocco and the UAE are exploring the potential of central bank digital currencies to enhance cross-border payments and improve financial inclusion. The exchange of experiences and expertise in this area is expected to benefit both countries.
The agreements also highlight the importance of regulatory cooperation in the financial sector. The two countries will work together to develop regulatory frameworks and standards for financial technology, including virtual assets and cryptocurrencies. This cooperation is expected to promote financial stability and protect consumers.
Overall, the memoranda of understanding between Morocco and the UAE mark an important step in strengthening financial cooperation between the two countries. The agreements are expected to promote economic growth, financial stability, and innovation in the financial sector.
Key points
- Morocco and the UAE have agreed to link their bank cards and explore the use of digital currencies.
- The agreements aim to enhance cooperation in banking supervision, Islamic finance, payment systems, and financial technology.
- The use of central bank digital currencies is a key area of focus for both countries.
