The Dubai Gold & Commodities Exchange (DGCX) today announced that it has inked a pact with the Agricultural Bank of China (ABC)-DIFC Branch, one of China's biggest state-owned commercial banks, with focus on areas of product development, strategy and exchange related market intelligence.
Gaurang Desai, CEO of DGCX, said: "ABC's vast customer network, increasing local presence, coupled with DGCX's expertise in the precious metals, commodities and derivatives provides an exciting platform to develop product & services that our shared customer base desires. We want to actively facilitate the tradeflows in the precious metals and commodities between China and the Middle East."
Fang Min, General Manager of Agricultural Bank of China (DIFC branch), said: "Promoting the precious metals and commodities business has been a focus area for us in the Middle East. In line with this business objective, a strategic collaboration with an Exchange like DGCX which is known to have a great portfolio of derivative products and influence across the regional financial markets, is beneficial for both parties as we combine our relevant area of expertise and experience."
DGCX inks a pact with Industrial and Commercial Bank of China
The Dubai Gold & Commodities Exchange (DGCX) also announced that it has signed a Memorandum of Understanding (MoU) with Industrial and Commercial Bank of China Limited (ICBC), the largest Chinese bank in the world, to collaborate in areas of product development and on the potential provision of high quality banking services that are essential to support cross-border derivatives business in the Middle East and Asia.
The MoU will also explore the possibility of ICBC becoming a settlement bank with the clearinghouse of the Exchange, DCCC. Such a move would facilitate the bank’s access to DGCX’s flourishing products and services, and eventually support clearing of RMB products.
Gaurang Desai said: “The partnership with ICBC is important for DGCX as we continue to develop our product offering for Chinese products. Asia and the China in particular, is a core growth area for us, especially in the context of the acceleration of the RMB internationalization process. ICBC is strongly facilitating development of Chinese economic and trade relations globally, and we look forward to closely working with them to drive greater collaboration between our markets.”
Zhou Xiaodong, General Manager of ICBC Abu Dhabi Branch, said: “The signing of this MoU today is to seek further collaboration regionally – particularly in the area of product development. There is no doubt more opportunities and cooperation will be brought into the fruitful future of both UAE and China. ”