Hassan Abdallah, Governor of the Central Bank of Egypt (CBE), and Pan Gongsheng, Governor of the People's Bank of China (PBoC), signed a Memorandum of Understanding (MoU) on Friday to promote the use of local currencies in financial and trade settlements and facilitate direct investments between the two nations.

Key Components of the Agreement:

1. Local Currency Usage

   • Encouraging settlements in Egyptian pounds (EGP) and Chinese yuan (CNY) for bilateral trade and financial transactions

   • Facilitating cross-border direct investments to enhance economic integration

2. Capacity Building & Technical Cooperation

   • Exchange of technical expertise and information

   • Joint training programs for central bank staff in:
     ✓ Monetary policy
     ✓ Financial markets
     ✓ Digital payment systems
     ✓ Financial supervision technologies
     ✓ Banknote issuance

3. Digital Innovation

   • Collaboration on central bank digital currencies (CBDCs)

   • Support for fintech innovations through:
     ✓ Joint research
     ✓ Technical knowledge sharing
     ✓ Adoption of advanced financial technologies

Official Statements

CBE Governor Hassan Abdallah:
"This MoU reflects the depth of historic Egyptian-Chinese relations and underscores our shared commitment to strengthening financial partnerships amid global economic shifts."

PBoC Governor Pan Gongsheng:
"The agreement marks a pivotal step in advancing Egypt-China economic ties, enabling best-practice exchanges and closer policy coordination."

Strategic Context

The CBE stated the MoU aligns with both nations' efforts to:

• Reduce reliance on third-party currencies

• Enhance bilateral financial resilience

• Foster technological innovation in banking sectors

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