Luanda: Banco Angolano de Investimentos (BAI) and Bank of China signed a memorandum of understanding on Tuesday in the Chinese city of Xiamen on Renminbi (RMB) clearing, a financial system for processing, settling, and finalizing cross-border payments. The agreement also provides for the two institutions to cooperate within the Cross-Border Interbank Payment System (CIPS), China's payment system established to process, clear, and settle international financial transactions.
According to Angola Press News Agency, the legal instrument aims to establish the basis for closer cooperation in international payments and the settlement of transactions in the Chinese currency, according to a press release sent to ANGOP on Tuesday. The memorandum establishes a framework for cooperation covering the opening of an RMB clearing account, support for BAI's indirect participation in the CIPS system through Bank of China, and the development of RMB clearing and settlement services.
The agreement also provides for the promotion of the use of the Chinese currency in commercial and financial transactions related to the Chinese market. Through this partnership, BAI will benefit from Bank of China's support in accessing CIPS, one of the main international infrastructures dedicated to the processing and settlement of cross-border payments in Renminbi.
This development will enable the bank to gradually strengthen its range of solutions for companies engaged in trade with the Chinese market, contributing to greater efficiency and diversification of the international payment mechanisms available to its customers. For Angola, the initiative represents an opportunity to deepen the integration of its financial system into international payment networks linked to the world's second-largest economy, while promoting more favorable conditions for the development of bilateral trade, investment, and economic cooperation between the two countries.
The initiative also forms part of efforts to modernize financial infrastructure and strengthen the international connectivity of Angola's banking sector. For BAI customers, the formalized cooperation could progressively, and in compliance with applicable regulatory requirements, provide access to specialized solutions for RMB payments, settlements, and commercial transactions.
This will provide additional support to companies engaged in import, export, or investment activities involving Chinese counterparties. On the occasion, BAI's Chief Executive Officer, Lus Filipe L©lis, described the signing as a step forward in BAI's internationalization strategy and said it reflected the bank's commitment to providing its customers with increasingly robust solutions to support their international activities.
He said cooperation with Bank of China strengthened BAI's capacity to keep pace with the growing economic relations between Angola and China, contributing to the development of trade, investment, and financial integration between the two markets. Bank of China is an international financial institution with a presence in multiple regions and a significant role in the development of financial services associated with trade and investment between China and international markets.
