The Central Bank of the UAE (CBUAE) and Bank Al-Maghrib, Morocco’s central bank, have signed two memoranda of understanding covering banking supervision, Islamic finance and potential links between their payment systems.
The first agreement focuses on regulatory cooperation and Islamic finance. The central banks will exchange supervisory information on banks and financial institutions, coordinate on regulatory practices, share expertise and support institutional capacity-building.
It also provides for closer coordination between Shariah governance bodies and the development of cross-border Shariah-compliant financing, including trade finance and infrastructure investment.
The second MoU covers instant payment platforms, national card switches and financial messaging systems. The two sides will assess whether these systems can be connected to improve the processing and settlement of cross-border transactions.
The potential integration could allow domestic payment cards issued in one country to be accepted in the other, subject to each country’s regulatory and supervisory requirements.
The central banks will also exchange expertise on retail and wholesale central bank digital currencies and study their possible use in cross-border payments. Cooperation will extend to fintech, virtual asset regulation and consumer protection measures related to crypto-assets and stablecoins.
CBUAE Governor Khaled Mohamed Balama said the cooperation would support the exchange of supervisory expertise, Islamic finance solutions and stronger payment-system links between the two countries.
Source: Fintech News UAE
