The Maldives Islamic Bank (MIB) has announced a new and more affordable arrangement for Maldivian businesses to deposit money from their transactions in China, addressing a major concern for local traders.
The new system, which facilitates the quick and easy deposit of funds into MIB accounts, was officially launched at a recent e-commerce workshop for business owners held in partnership with Alibaba.
Speaking at the event, MIB’s Chief Retail Banking Officer Hussain Alim Shakoor stated that one of the biggest challenges for Maldivian manufacturers and businesses trading with China has been the high costs associated with receiving foreign payments.
He noted that while channels for bringing money into the Maldives exist, the high transaction costs involved pose a major deterrent for local businesses.
According to Alim, MIB focused on establishing a low-cost, efficient method for businesses to repatriate funds from China.
"The bank was most concerned with how to bring money to businesses with the lowest fee," he said, highlighting the importance of the new initiative with China, the world's second-largest economy.
The new arrangement allows Maldivian businesses to receive payments from any Chinese entity, whether in Chinese yuan or US dollars, with only a minimal charge.
"This means that if you have a payment from any Chinese entity, whether it is in yuan or USD, you can bring it to Maldives easily and quickly through the corridor we have already established. And we will credit you in USD," he explained.
Alim further stated that the MIB is actively working to establish similar low-fee payment facilities for Maldivian businesses in other countries. He pledged that the bank would continue to provide a supportive environment for Maldivian business owners.
The move is seen as a significant step for Maldivian businesses that rely heavily on trade with China. The MIB’s new payment corridor is expected to streamline operations for local importers and manufacturers and boost economic activity.