CENTRAL BANKS of the Philippines and the United Arab Emirates (UAE) last week inked a memorandum of understanding (MoU) to advance Islamic banking and finance and modernize transactions between the two countries.

Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. on Feb. 18 led the virtual signing of the MoU with Central Bank of the United Arab Emirates (CBUAE) Governor Khaled Mohamed Balama.

“This occasion reflects our shared goals in Islamic banking and finance, and in modernizing cross-border payment and messaging systems,” Mr. Remolona said in a speech at the ceremony.

“This partnership supports the BSP’s push to digitalize payments and make cross-border transactions more efficient.”

He said the agreement with the CBUAE will allow overseas Filipino workers and other migrant Filipinos in the UAE to have access to improved remittance platforms.

“For Filipinos in the UAE, especially our overseas Filipino workers (OFWs), this means better remittance channels, and more efficient financial services for their families back home,” Mr. Remolona said.

He added that the partnership also opens more avenues for both central banks to work together on initiatives for Islamic banking and finance.

“We also see strong opportunities for collaboration in Islamic banking and finance,” Mr. Remolona said. “By sharing knowledge and strengthening regulation, we can build a sound and inclusive ecosystem that supports financial innovation and inclusion.” — Katherine K. Chan