The Central Bank of the United Arab Emirates (CBUAE) and the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, have signed a Memorandum of Understanding (MoU) to strengthen financial infrastructure, promote economic cooperation, and enhance bilateral trade between the UAE and the Philippines.
Under the MoU, both central banks will work towards enabling seamless cross-border payment transactions through the integration of their instant payment systems.
The collaboration also includes exploring future interoperability between national card switches and financial messaging systems to improve transaction processing, settlement efficiency, and overall financial connectivity.
The initiative is expected to significantly enhance operational efficiency and reduce friction in cross-border financial flows between the two countries.
The agreement further outlines cooperation in key fintech domains, including open finance, digital assets, and the development of central bank digital currency (CBDC) frameworks for both retail and institutional use cases.
Both institutions also expressed commitment to knowledge-sharing and technical collaboration aimed at strengthening digital financial ecosystems and promoting innovation-led growth in the banking sector.
The partnership is particularly significant for the large Filipino expatriate community in the UAE. Improved payment connectivity is expected to enhance remittance channels, making transactions faster, more secure, and more cost-effective for overseas Filipino workers and their families.
The MoU also provides scope for cooperation in Islamic banking and finance, reflecting the UAE’s established position in the global Islamic finance ecosystem and the Philippines’ interest in expanding inclusive financial services.
HE Khaled Mohamed Balama CBUAE-Governor
“This agreement marks a significant step toward building a more connected and innovative financial ecosystem between the UAE and the Philippines. By leveraging advanced payment technologies and sharing expertise, we are laying the foundation for a new era of seamless integration and sustainable, innovation-led economic growth.”
Dr. Eli M. Remolona, Jr., Governor of the Bangko Sentral ng Pilipinas added that, “This partnership supports the BSP’s push to digitalize payments and make cross-border transactions more efficient. For Filipinos in the UAE, especially our overseas Filipino workers, this means better remittance channels and more efficient financial services for their families back home. We also see strong opportunities to collaborate in Islamic banking and finance as we work toward a sound and inclusive financial ecosystem.”
