UAE and Seychelles Enhance Payment System Collaboration

Khaled Mohamed Balama, the Governor of the Central Bank of the UAE (CBUAE), and Caroline Abel, the Governor of the Central Bank of Seychelles (CBS), signed two Memoranda of Understanding in Abu Dhabi. These agreements aimed to improve the utilization of local currencies for cross-border financial and commercial transactions and to integrate payment and messaging systems between the two countries.

The first MoU aims to establish a framework for promoting the use of the UAE dirham and the Seychellois rupee in bilateral commercial transactions. This includes developing the currency exchange market, facilitating bilateral trade and investment, settling remittances, and fostering financial market growth. The agreement outlines various aspects to enable the settlement of commercial transactions in the two local currencies, under each country's laws and regulations.

Under the second MoU, the CBUAE and CBS will enhance collaboration to leverage instant payment platforms, electronic switches, and messaging systems for mutual benefit. This includes integrating the UAE's Instant Payments Platform (IPP) from its Financial Infrastructure Transformation Program with the Seychelles' corresponding platform. The central banks will also explore linking their messaging systems and collaborating on FinTech initiatives and Central Bank Digital Currencies (CBDCs).

The signature of the MoU demonstrates CBUAE's commitment to expanding relations with regional and international partners to enhance the UAE's global economic and commercial partnerships. Using the UAE dirham and Seychellois rupee for cross-border transactions will reduce costs, save time in settlement, and foster development in the foreign exchange markets of both currencies.

Collaborating on linking payment and messaging systems will enhance the efficiency of cross-border financial transactions between the UAE and Seychelles.