Bank of Maldives Introduces Chinese Yuan Accounts to Strengthen Bilateral Trade

BML Launches Yuan Accounts Amidst Growing Bilateral Ties

The Bank of Maldives (BML) officially introduced Chinese Yuan accounts on September 22, 2025, marking a significant milestone in strengthening financial and trade relations between the Maldives and China. The launch event was attended by key dignitaries, including the Chinese Ambassador to the Maldives, His Excellency Kong Xianghua, BML Chairperson Ahmed Ali Habib, and CEO and Managing Director Mohamed Shareef.

This initiative is seen as crucial for the effective implementation of the China-Maldives Free Trade Agreement (FTA) and is expected to substantially boost bilateral trade and investment.

Facilitating Enhanced Trade and Investment

The introduction of Yuan-denominated accounts is poised to expand trade opportunities and attract more Chinese investments and expertise to the Maldives. Ambassador Kong Xianghua emphasized that this move would elevate 'China-Maldives cooperation in the financial sector to new heights,' promising a brighter future for their relationship.

The China-Maldives FTA, which was signed in 2017 and came into effect in January 2025, is the Maldives' first bilateral free trade agreement. It aims to eliminate duties on over 95% of traded goods between the two nations, with projections to increase bilateral trade from USD 700 million to USD 1 billion.

Comprehensive New Banking Services

BML's new offerings provide a range of services designed to streamline financial transactions in Chinese Yuan for both individuals and businesses:

• Current Accounts: Customers can now open current accounts in Chinese Yuan through internet and mobile banking applications.
• International Transfers: The bank has rolled out international transfer services, enabling customers to send and receive funds directly in Yuan.
• Letters of Credit (LCs): Importers and exporters will benefit from the issuance of LCs in Yuan, simplifying trade transactions with Chinese partners.
• WeChat Pay Integration: BML-issued MVR Visa and Mastercard debit and credit cards can be linked to WeChat Pay, one of China's largest payment platforms, for seamless transactions with Chinese merchants. USD debit, credit, and travel cards can also be added.
• WeChat Wallet Access: For the first time, Maldivians can receive funds in Yuan directly into their WeChat Wallets, use them in Mainland China, or transfer them to others via the platform.

BML CEO Mohamed Shareef stated that the initiative marks 'an important step forward in modernizing the Maldives' financial sector,' providing 'additional convenience to our customers' by connecting with one of the world's largest economies.

Future Outlook and Economic Impact

In addition to the immediate services, BML announced plans to begin issuing UnionPay cards from January 2026. These cards, accepted in over 180 countries, will further expand access to a vast global payment network for Maldivian individuals and businesses.

This development follows a Memorandum of Understanding (MoU) signed between the Maldives and China in September 2024, aimed at facilitating trade and investment in local currencies, including the Maldivian Rufiyaa and the Chinese Yuan. This agreement, signed by the Maldives Economic Development and Trade Ministry and the People's Bank of China (PBoC), is expected to ease pressure on the Maldivian currency and foreign reserves.