China, UAE advance cross-border payment cooperation

China's Cross-Border Interbank Payment System (CIPS) and the central bank of the United Arab Emirates (UAE) have signed a memorandum of understanding to enhance cross-border payment cooperation, the People's Bank of China (PBOC), China's central bank, announced on Wednesday.

The signing is expected to improve payment infrastructure and the efficiency of cross-border payments, according to an online statement by the PBOC, which administers and regulates CIPS.

Accordingly, CIPS and the central bank of the UAE will work together to develop a cross-border payment connectivity program, which will provide local currency clearing services for financial institutions in the Middle East and North Africa.

The two sides will also deepen exchanges on risk management and compliance, and make cross-border payment systems safer and more stable, according to the statement.