China’s Cross-Border Interbank Payment System (CIPS) and the Central Bank of the United Arab Emirates (CBUAE) have signed a MoU to strengthen cooperation on cross-border payments, the People’s Bank of China (PBOC) announced.

According to the statement by the PBOC, which oversees and regulates CIPS, the agreement is expected to enhance payment infrastructure and improve the efficiency of cross-border transactions.

As part of the agreement, CIPS and the UAE’s central bank will collaborate on the development of a cross-border payment connectivity programme, aimed at providing local currency clearing services for financial institutions across the Middle East and North Africa.

The two parties will also step up exchanges in areas such as risk management and compliance, with the goal of making cross-border payment systems “safer and more stable,” the statement said.

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This article first appeared on Fintech News Middle East