China appoints second yuan clearing bank in UAE

China’s central bank has appointed a second yuan clearing bank in the United Arab Emirates, signaling a deepening of financial cooperation and a further step toward the internationalization of its currency, reports Caixin. The People’s Bank of China (PBOC) on Tuesday signed a yuan clearing agreement with First Abu Dhabi Bank, naming it a yuan clearing institution. The announcement was made by PBOC deputy governor Xuan Changneng at the 2025 Annual Financial Street Forum in Beijing.

First Abu Dhabi Bank becomes the second yuan-clearing bank in the UAE, following the Agricultural Bank of China’s Dubai branch, which was designated in 2016. The selection of a local institution marks a first for the region and reflects a joint push by Beijing and Abu Dhabi to strengthen financial integration.

“This aligns with China’s pursuit of high-level opening-up and its goal to share development opportunities with the world,” Xuan said.