The central banks of Morocco and the United Arab Emirates have agreed to strengthen cooperation in banking supervision and Islamic finance, and interlink payment and financial messaging systems, contributing to stronger bilateral cooperation and enhancing the efficiency of cross-border financial transactions between the two countries.
The agreement was inked lately in Abu Dhabi by Abdellatif Jouahri, Governor of Bank Al- Maghrib and Khaled Mohamed Balama, Governor of UAE Central bank.
The signatories pledged to enhance cooperation on regulatory and supervisory issues and exchange supervisory information on banks and financial institutions. They also agreed to step up coordination in supervisory practices & regulations, exchange expertise and build institutional capacity.
The two countries central banks will strengthen coordination among Shariah governance bodies for Islamic banking, and develop cross- border Shariah-compliant financing, including trade finance and infrastructure investment.
They agreed to look into the possibility of interlinking instant payment platforms, national card switches and financial messaging systems in both countries to facilitate the processing and settlement of cross-border transactions and enable mutual acceptance of domestic payment cards, in line with the regulatory and supervisory requirements of both countries.
They also agreed to exchange expertise in developing retail and wholesale central bank digital currencies (CBDCs), explore ways to use them in cross-border payments between the two countries, and cooperate in fintech, regulatory and supervisory frameworks governing virtual assets, including crypto-assets and stablecoins, and related consumer protection mechanisms.
Khaled Mohamed Balama, Governor of the CBUAE, said the signing of the agreement with Bank Al-Maghrib reflects a shared commitment to expanding financial and banking cooperation with Morocco.
Through this cooperation, “we look forward to exchanging supervisory expertise, developing Islamic finance solutions, and exploring opportunities to strengthen links between payment systems, contributing to a more efficient and innovative financial sector and supporting economic and trade relations between the two countries,” said Mr. Balama.
For his part, Abdellatif Jouahri, Governor of Bank Al-Maghrib, said the signing of the agreement marks an important step in consolidating the partnership between Bank Al-Maghrib and the Central Bank of the UAE, and expanding coordination in supervision, regulation and Islamic finance.
“This partnership also opens up opportunities to develop cross-border financial transactions and accelerate their processing, and to explore ways to use central bank digital currencies in payments between the two countries, contributing to greater efficiency in financial transactions and stronger cooperation between the two institutions”, he underlined.
