China Expands Yuan Clearing to First Abu Dhabi Bank in UAE
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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.
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.
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- China named First Abu Dhabi Bank as the UAE’s second yuan clearing bank, boosting financial cooperation and yuan internationalization.
- Cross-border yuan settlements between China and the UAE hit 864 billion yuan ($121.2 billion) in the first nine months of 2025, up 20% year-on-year.
- UAE participation in China’s payment systems and bond market is increasing, with 19 institutions joining CIPS and 14 billion yuan in Chinese debt held.
- First Abu Dhabi Bank
- First Abu Dhabi Bank was appointed as a yuan clearing institution by the People's Bank of China (PBOC), becoming the second yuan-clearing bank in the UAE. This marks the first time a local institution in the region has been selected for this role, signifying deeper financial cooperation between China and the UAE.
- Agricultural Bank of China
- Agricultural Bank of China has a Dubai branch that was designated as a yuan-clearing institution in 2016, preceding First Abu Dhabi Bank's appointment as the second such institution in the UAE. This highlights the bank's role in the internationalization of the yuan and growing financial cooperation between China and the UAE.
- 2015：
- China and the UAE launched a $10 billion joint investment fund targeting sectors including energy, infrastructure, and advanced manufacturing.
- 2016：
- The Agricultural Bank of China’s Dubai branch was designated as the first yuan-clearing bank in the UAE.
- 2018：
- The Emirate of Sharjah became the first sovereign issuer from the Middle East to access China’s bond market.
- November 2023：
- China and the UAE renewed a bilateral currency swap deal worth 35 billion yuan.
- By first nine months of 2025：
- Cross-border yuan settlements between China and the UAE reached 864 billion yuan, a 20% increase from a year earlier.
- 2025-10-28：
- The People’s Bank of China signed a yuan clearing agreement with First Abu Dhabi Bank, naming it the second yuan clearing institution in the UAE.
- In 2025：
- China and the UAE completed a real-transaction pilot under their joint digital currency bridge initiative and explored a new project to connect their cross-border payment systems.
- October 2025：
- The Emirate of Sharjah returned to China’s bond market with another 2 billion yuan in Panda bonds.
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