The Bangko Sentral ng Pilipinas (BSP) and the Central Bank of the United Arab Emirates (CBUAE) have signed a memorandum of understanding (MoU) to strengthen cooperation in Islamic banking and finance and to modernise cross-border payment and messaging systems between the Philippines and the United Arab Emirates.
The agreement was signed virtually on Feb. 18 by BSP Governor Eli M. Remolona, Jr. and CBUAE Governor Khaled Mohamed Balama. The partnership highlights the shared commitment of both central banks to advancing Islamic finance frameworks while enhancing the efficiency and reliability of financial transactions between the two countries.
In his remarks during the ceremony, Governor Remolona said the collaboration reflects common goals in promoting Islamic banking and improving cross-border payment infrastructure. He noted that the partnership supports the BSP’s broader push to digitalise payments and make international transactions more seamless and cost-efficient.
The agreement is expected to benefit overseas Filipino workers (OFWs) and other Filipino migrants in the UAE by providing improved remittance channels and more efficient financial services for their families in the Philippines. Enhanced systems could help streamline processing times and strengthen the overall remittance experience.
Beyond facilitating remittances, the MoU also opens opportunities for both central banks to work more closely on initiatives related to Islamic banking and finance. The partnership aims to encourage knowledge-sharing, regulatory cooperation and the development of financial solutions that support inclusive and sustainable economic growth in both countries.