Under the joint witness of Chinese Premier Li Qiang and Prime Minister of Egypt Mostafa Madbouly, Pan Gongsheng, Governor of the People’s Bank of China (PBOC), and Hassan Abdalla, Governor of Central Bank of Egypt (CBE), signed Memorandum of Understanding (MoU) on Bilateral financial cooperation, promotion of settlement in local currencies and collaboration in 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, etc; to enhance cooperation in local currency settlement, promoting the settlement of current account transactions and direct investment in local currencies; and to strengthen collaboration on Central Bank Digital Currency and digital innovation, including exchange of information and project cooperation. This MoU will facilitate the sharing of best practices and regulatory coordination in both jurisdictions, thereby creating an enabling environment to unlock greater potential of bilateral financial cooperation.
During his stay in Egypt, Governor Pan met with Governor Hassan Abdalla. They exchanged views on economic and financial developments, bilateral financial cooperation and etc. Governor Pan noted that financial and economic cooperation between China and Egypt has been progressed well with steady growth in trade. Given external uncertainties, the PBOC and CBE face many shared challenges. Both sides should continue to deepen practical cooperation in key areas such as bilateral local currency swap and settlements, interconnection of payment and settlement systems, investment and financing in financial markets, and mutual establishment of financial institutions. These efforts will provide more efficient and convenient financial services for trade and investment between the two countries’ enterprises, further strengthening the China-Egypt comprehensive strategic partnership.
In addition, under the joint witness of Governor Pan and Governor Hassan Abdalla, China UnionPay and Cross-Border Interbank Payment System (CIPS) signed MoUs with their Egyptian partners respectively, to improve UnionPay payment services across multiple use cases in Egypt and facilitate banks within the China-Egypt TEDA Suez Economic and Trade Cooperation Zone in conducting cross-border RMB business via CIPS.
