The Maldives is set to welcome a Chinese bank as part of efforts to strengthen economic ties between the two nations.

Economic Minister Mohammed Saeed announced today that work has begun on establishing a Chinese bank in the Maldives.

The announcement was made during the inauguration of the Maldives-China (Sichuan) Trade and Investment Cooperation Conference, aimed at highlighting business opportunities in the country.

Minister Saeed emphasized that the upcoming free trade agreement with China, which will take effect next month, will provide significant benefits to the Maldives.

He noted that the necessary legislation has already been passed to facilitate these developments.

A key feature of the agreement is the introduction of a "local currency settlement" system, allowing Maldivian businesses to import goods from China using the Maldivian rufiyaa instead of the U.S. dollar.

 He added that discussions are ongoing between the People’s Bank of China and the Maldives Monetary Authority to finalize the agreement.

Minister Saeed highlighted that this arrangement would ease the importation of essential goods such as vegetables, fruits, construction materials, and technology items, reducing reliance on the dollar.

He pointed out that China's annual exports to Maldives amount to USD 700 million, with Sichuan Province alone accounting for USD 19 million of that trade volume.

The one-day conference, attended by over 100 participants from Sichuan Province and the Maldives, aimed to enhance business relations between the two countries and provide Chinese companies with information on investment opportunities in the Maldives.