Egypt's central bank said Friday it had signed a memorandum of understanding with the Chinese central bank to deepen cooperation, with a focus on promoting local currency settlements in cross-border trade and investment. The agreement, signed by Central Bank of Egypt (CBE) Governor Hassan Abdalla and People's Bank of China (PBC) Governor Pan Gongsheng, aims to enhance collaboration across monetary policy, financial markets, payment systems, financial technology, and central bank digital currencies (CBDCs). The signing ceremony took place in Cairo on Thursday in the presence of Egyptian Prime Minister Moustafa Madbouly and Chinese Premier Li Qiang, as part of efforts to strengthen bilateral economic ties. "This MoU reflects the evolution of the historic ties between Egypt and China," Abdalla said. "It demonstrates both institutions' commitment to strengthening partnerships between their respective financial institutions in the light of global economic developments." He added that "this step ... is expected to elevate economic cooperation to more advanced and effective levels." Key provisions of the pact include information-sharing, staff training, and joint research into financial innovation. It also supports efforts to facilitate direct investment flows and regulatory coordination between the two countries. Pan described the agreement as "a pivotal step" in advancing bilateral financial relations, saying it would enable the exchange of best practices and help unlock new opportunities in the banking and fintech sectors. The move comes as Egypt seeks to diversify its trade settlement mechanisms and reduce reliance on hard currency, while China continues to promote the use of the yuan in international transactions. Attribution: Amwal Al Ghad English
