China and Egypt's central banks sign memorandum of understanding, focusing on local currency settlement and digital currency cooperation

On July 10, witnessed by Chinese Premier Li Qiang and Egyptian Prime Minister Madbouly, Pan Gongsheng, Governor of the People's Bank of China, and Hassan Abdallah, Governor of the Central Bank of Egypt, signed the "Memorandum of Understanding between the People's Bank of China and the Central Bank of Egypt on Bilateral Financial Cooperation, Promoting Local Currency Settlement and Cooperation in the Field of Central Bank Digital Currency and Digital Innovation". This move has opened a new chapter for China-Egypt financial cooperation.

The memorandum aims to strengthen bilateral financial cooperation in all aspects. In the fields of monetary policy framework, financial market, payment system, etc., the two sides will carry out in-depth business exchanges and information sharing, which will help the central banks of the two countries learn from each other's experience, improve the scientificity and effectiveness of financial policies, and provide support for the stable development of financial markets.

Cooperation in local currency settlement is an important part of this. Promoting the two countries to use more local currencies in current account transactions and direct investment can effectively reduce exchange costs, avoid exchange rate risks, and further promote the facilitation of bilateral trade and investment. With the expansion of the scale of local currency settlement, China-Egypt economic ties will become closer, and trade exchanges are expected to usher in a new growth peak.

It is worth noting that the two sides cooperate in the field of central bank digital currency and digital innovation. Through information exchange and project cooperation, China and Egypt will keep up with the development trend of global financial technology and explore the application potential of central bank digital currency in cross-border payments, financial services and other fields. This will not only help improve payment efficiency, but also provide practical experience for financial innovation in the digital economy era and inject new vitality into the financial systems of the two countries.

The signing of this memorandum of understanding is a vivid manifestation of the comprehensive strategic partnership between China and Egypt in the financial field. It will strengthen exchanges, cooperation and policy coordination in the fields of competence of both sides and create a good environment for further releasing the potential of financial cooperation between the two countries. In the future, as various cooperation measures are gradually implemented, China-Egypt financial cooperation is expected to yield more fruitful results, add new impetus to the economic development and people's well-being of the two countries, and contribute positively to building a more open, inclusive, balanced and inclusive global economic governance system.