The Central Bank of the United Arab Emirates and the Hong Kong Monetary Authority recently held their third meeting in Abu Dhabi, co-chaired by His Excellency Khaled Mohamed Balama, Governor of the Central Bank of the UAE, and Eddie Yu, Chief Executive of the Hong Kong Monetary Authority.
According to a press release issued today, this meeting aims to enhance collaboration and strengthen ties between the financial services sectors of both regions, highlighting the depth of institutional partnership and regulatory visions shared between them.
This meeting followed the positive outcomes from their second meeting in Hong Kong in December 2024, where both parties discussed various topics, including linking cross-border debt markets, the latest developments in digital assets and tokenization, central bank digital currencies, the regulation of stablecoins, and supply chain financing.
Attendees included esteemed deputy governors and senior officials from both sides, underscoring the commitment of both institutions to foster financial and technical cooperation to ensure sustainable growth in the financial sector and to establish frameworks for institutional coordination at both strategic and operational levels.
The Central Bank of the UAE has officially joined the Central Moneymarkets Unit, which serves as the central depository for securities in Hong Kong. This follows a memorandum of understanding signed during the previous meeting about linking debt markets and related financial infrastructure.
This membership allows the Central Bank of the UAE and investors in the UAE direct access to Chinese capital markets and financial assets with greater efficiency and lower costs, leveraging Hong Kong’s sophisticated infrastructure.
This move is a significant step toward enhancing market integration and financial interconnectedness between the two regions, broadening prospects for links between global financial centers.
His Excellency Khaled Mohamed Balama stated that the ongoing collaboration with the Hong Kong Monetary Authority represents a shared commitment to strengthening cross-border financial market linkages and developing international partnerships. He emphasized that the Central Bank’s membership in the Central Moneymarkets Unit will facilitate access to Asian capital markets and deepen ties with other global financial hubs, supporting diversified investment opportunities for participants in the UAE markets and solidifying its position as a leading international capital market center. He affirmed the determination to continue collaborative efforts to build more resilient and interconnected financial markets.
In response, Eddie Yu remarked that the partnership reflects a shared vision focused on supporting growth and fostering innovation. The Central Bank of the UAE’s membership in the Central Moneymarkets Unit affirms Hong Kong’s status as a prominent global center for Renminbi transactions outside of China, and as a key gateway for international investors seeking access to China and Asian markets. He looks forward to continued cooperation with the Central Bank of the UAE to advance important initiatives discussed in the ongoing bilateral meetings.