Abu Dhabi:Morocco’s central bank, Bank Al-Maghrib (BAM), and the Central Bank of the United Arab Emirates (CBUAE) have entered into two memorandums of understanding (MoUs) to enhance cooperation in banking supervision and Islamic finance, as well as to connect payment and financial messaging systems between the two nations.

According to Agence Marocaine De Presse, the agreements were signed by Abdellatif Jouahri, Governor of Bank Al-Maghrib, and Khaled Mohamed Balama, Governor of the Central Bank of the United Arab Emirates, at the CBUAE headquarters in Abu Dhabi. These MoUs aim to strengthen bilateral relations and improve the efficiency of cross-border financial transactions.

The first memorandum focuses on enhancing cooperation in regulatory and prudential matters, exchanging supervisory information regarding banks and financial institutions, and coordinating prudential practices and regulations. It also seeks to bolster Sharia governance in Islamic finance and develop cross-border financing solutions that comply with Sharia law, particularly in trade finance and infrastructure investments.

The second memorandum aims to explore the integration of the two countries’ instant payment platforms, national card switching systems, and financial messaging systems to facilitate cross-border transactions and mutual acceptance of national payment cards. It also involves the exchange of expertise in central bank digital currencies (CBDCs) and their potential use in cross-border payments. Additionally, there is a focus on cooperation in financial technologies and regulatory frameworks for virtual assets, including crypto-assets and stablecoins, with a view to protecting consumers.