Agadir – Morocco’s Bank Al-Maghrib (BAM) and the Central Bank of the United Arab Emirates (CBUAE) have signed two memoranda of understanding (MoUs) to expand cooperation in banking supervision, Islamic finance, payment systems, and financial technology.
The agreements, signed on October 3 at the CBUAE headquarters in Abu Dhabi, seek to strengthen financial cooperation between Morocco and the UAE and improve the efficiency of cross-border transactions between the two countries.
CBUAE Governor Khaled Mohamed Balama and BAM Governor Abdellatif Jouahri signed the two MoUs.
Under the first agreement, the two central banks will strengthen cooperation on regulatory and supervisory matters and exchange supervisory information related to banks and financial institutions.
The agreement also provides for coordination on supervisory practices and regulations, the exchange of expertise, and efforts to strengthen institutional capacity.
In Islamic finance, the two institutions will coordinate among Shariah governance bodies and work to develop cross-border Shariah-compliant financing, including trade finance and infrastructure investment.
The second MoU focuses on payment systems and financial messaging. The two central banks will explore ways to interlink instant payment platforms, national card switches, and financial messaging systems in Morocco and the UAE.
The initiative aims to facilitate the processing and settlement of cross-border transactions and enable the mutual acceptance of domestic payment cards, subject to the regulatory and supervisory requirements of both countries.
The agreement also covers cooperation on central bank digital currencies (CBDCs), including the exchange of expertise in developing retail and wholesale CBDCs and exploring their potential use in cross-border payments between Morocco and the UAE.
The two institutions will also cooperate on financial technology and regulatory and supervisory frameworks for virtual assets, including crypto-assets and stablecoins. The agreement also covers consumer protection mechanisms related to such assets.
Jouahri described the agreements as an important step in strengthening cooperation between the two central banks.
“The signing of the two MoUs marks an important step in consolidating the partnership between Bank Al-Maghrib and the Central Bank of the UAE, and expanding coordination in supervision, regulation and Islamic finance,” Jouahri said.
“This partnership also opens up opportunities to develop cross-border financial transactions and accelerate their processing, and to explore ways to use central bank digital currencies in payments between the two countries, contributing to greater efficiency in financial transactions and stronger cooperation between the two institutions,” BAM’s governor added.
For his part, Balama said the agreements reflect the UAE’s intention to expand financial cooperation with Morocco.
“The signing of the two MoUs with Bank Al-Maghrib reflects our commitment to expanding financial and banking cooperation with the brotherly Kingdom of Morocco, in line with the vision of the UAE’s wise leadership and in support of the mutual interests of both countries,” he stated.
“Through this cooperation, we look forward to exchanging supervisory expertise, developing Islamic finance solutions, and exploring opportunities to strengthen links between payment systems, contributing to a more efficient and innovative financial sector and supporting economic and trade relations between the two countries,” Balama concluded.
