China and Oman have signed agreements covering digital currencies, cross-border payments and a 30 billion yuan currency swap, strengthening financial cooperation between the two countries.
The agreements were announced on November 3, 2026, following discussions between People's Bank of China (PBOC) Governor Pan Gongsheng and Central Bank of Oman Governor Ahmed bin Jaafar Al Musalmi.
The five-year currency swap arrangement covers 30 billion Chinese yuan, equivalent to approximately $4.2 billion, against 1.5 billion Omani rials.
A separate memorandum of understanding establishes cooperation on digital payments and legally recognized digital currencies.
The agreements represent another step in China's efforts to expand the international use of the yuan and develop cross-border payment infrastructure.
Digital Yuan Cooperation Targets Cross-Border Payments
The digital currency agreement focuses on strengthening payment cooperation between China and Oman, potentially supporting faster and more efficient international transactions.
China has been developing its central bank digital currency, known as the digital yuan or e-CNY, as part of its broader financial modernization strategy.
Unlike decentralized cryptocurrencies such as Bitcoin, the digital yuan is issued and controlled by China's central bank.
The currency swap agreement could also help businesses settle bilateral transactions using yuan and Omani rials.
According to Oman's government, China accounted for approximately 23.8% of the country's total trade in 2025.
Bilateral trade reached roughly 9.6 billion Omani rials, equivalent to approximately $25 billion, highlighting the economic importance of their relationship.
However, neither government has announced a specific launch date for digital yuan payment services under the new agreement.
Saudi Arabia's mBridge Exit Changes Gulf CBDC Landscape
The agreements follow reports that Saudi Arabia ended its participation in Project mBridge, a cross-border central bank digital currency settlement initiative involving China and other jurisdictions.
Saudi Arabia's central bank completed its proof-of-concept participation in May 2025, with the departure becoming public in September 2026.
The move was reportedly consistent with the project's original development roadmap.
Project mBridge uses distributed ledger technology to facilitate direct settlement between participating financial institutions.
Its objective is to reduce reliance on traditional correspondent banking arrangements and improve cross-border payment efficiency.
Although China's agreement with Oman strengthens regional financial cooperation, neither government has announced that Oman will join mBridge.
The new partnership therefore should not be interpreted as a confirmed replacement for Saudi Arabia's previous involvement.
Digital Yuan Dominates mBridge Transactions
Project mBridge has already processed substantial cross-border payment volumes, demonstrating the potential scale of central bank digital currency infrastructure.
According to figures reported by Reuters and attributed to Atlantic Council data, the platform had processed more than 4,000 transactions worth approximately $55.5 billion by early 2026.
The digital yuan reportedly accounted for around 95% of the platform's settlement volume.
Participating jurisdictions include mainland China, Hong Kong, Thailand and the United Arab Emirates, with Macau also pursuing integration.
These developments support Beijing's broader strategy of increasing the yuan's international use.
However, high transaction volumes do not necessarily mean the digital yuan has achieved widespread international adoption beyond participating institutions.
China Expands Financial Cooperation With Oman
The digital currency agreements form part of a broader diplomatic and economic partnership between China and Oman.
During Sultan Haitham bin Tarik's visit to Beijing, the countries announced additional agreements covering investment, technology and other sectors.
The Oman Investment Authority also signed 23 agreements and partnerships with Chinese institutions.
The visit marked the first by an Omani head of state since diplomatic relations were established in 1978.
Meanwhile, China's 2026–2030 financial reform plans prioritize continued digital yuan development and greater use of the renminbi in international trade and investment.
The Oman partnership could support those objectives by creating opportunities for cooperation on payment technology and currency settlement.
Nevertheless, the agreements do not establish an operational CBDC payment corridor or confirm Oman's membership in mBridge.
For now, China and Oman have laid the groundwork for deeper digital currency cooperation, with implementation details still to be announced.
