China and Egypt strengthen cooperation on settlements, CBDCs

They are enhancing cooperation in local currency settlement.

The People’s Bank of China (PBOC) and the Central Bank of Egypt (CBE) have signed a memorandum of understanding (MOY) on bilateral financial cooperation and promote settlement in local currencies.

The two entities will also collaborate in central bank digital currency (CBDC) and digital innovation.

The MOU aims to strengthen bilateral financial cooperation, including business communication and information sharing in areas such as monetary policy framework, financial markets, payment systems, amongst others.

It also aims to enhance cooperation in local currency settlement, promoting the settlement of current account transactions and direct investment in local currencies.

The MOU also aims to strengthen collaboration on CBDC and digital innovation, including exchange of information and project cooperation.

PBOC and CBE will share best practices and enact regulatory coordination in both jurisdictions.