The Central Bank of the UAE said it had signed a memorandum of understanding, MoU, with the Bank of Algeria for supporting and developing the financial and banking sector in the UAE and People’s Democratic Republic of Algeria.

The deal underscores the importance of the sector as a major pillar for supporting expansion of trade exchange between the two countries and increasing mutual investments, especially in the private sector.

The MoU was signed on the sidelines of the visit of H.H. Sheikh Mansour bin Zayed Al Nahyan, Deputy Prime Minister and Minister of Presidential Affairs, to Algeria, which concluded on Tuesday evening.

The agreement was signed by Mubarak Rashed Al Mansoori, Governor of Central Bank of the UAE, and Muhammad Loukal, Governor of Bank of Algeria. A number of senior officials were also present at the event.

The MoU aims to set up a proper framework to encourage banks and financial institutions in both countries to define their areas of co-operation.

It will also make necessary arrangements to provide funding lines and reinforce letters of credits for banks, besides boosting co-operation in the areas of training and exchange of expertise and information.