China signs digital currency pact with Oman after Saudi exits mBridge

China unveiled a CBDC cooperation and a 30 billion yuan currency swap memorandum of understanding (MoU) with Oman.

The deals reopen inroads for Beijing’s digital yuan to penetrate into the Gulf region as the world’s second largest economy moves on roughly six weeks after news broke that Saudi Arabia had exited its flagship mBridge settlement platform.

What deals did China sign with Oman?

China and Oman signed multiple deals at a Beijing meeting between Oman’s Central Bank Governor Ahmed bin Jaafar Al Musalmi and People’s Bank of China (PBOC) Governor Pan Gongsheng.

One of the deals was a swap arrangement based on the Chinese yuan and Omani rial. They also signed a separate MoU to strengthen digital payment and legal digital currency cooperation between both countries.

Per the PBOC’s November 3 statement, the five-year swap deal, capped at 30 billion yuan and matched against 1.5 billion Omani rials, will make the monetary cooperation between the agreeing nations more robust. It will also improve the settlement of cross-border digital payments.

In its own release, Oman’s Foreign Ministry said it entered into one agreement, signed 14 memoranda of understanding and a cooperation protocol with China. The arrangements broadly covered emergency technology such as artificial intelligence and a health protocol for Omani dried dates.

The Oman Investment Authority signed another 23 agreements and partnerships with Chinese institutions.

Commerce Minister Anwar bin Hilal Al Jabri told the Oman News Agency that China was the country’s leading trade partner in 2025, accounting for roughly 23.8% of total trade. Bilateral trade reached 9.6 billion Omani rial (approximately $25 billion) during the year.

Oman’s leader, Sultan Haitham bin Tarik and President Xi Jinping of China were also in attendance at the Great Hall of the People, witnessing the signing of the currency agreement. Sultan Haitham is the first Omani head of state to visit China since both nations established diplomatic relations in 1978.

When did Saudi Arabia leave the Chinese mBridge platform?

The Financial Times reported in September that Saudi Arabia’s central bank (SAMA) was no longer a participant in China’s Project mBridge. SAMA joined the cross-border CBDC platform as an observing member under the Bank for International Settlements (BIS) in 2023. Then it stopped participating when it completed its proof of concept on May 13, 2025.

The withdrawal, which was not publicly disclosed before the September FT report, was described as according to the project’s original roadmap.

Finance professional Matteo Giovannini argued in a South China Morning Post (SCMP) article that the Saudi exit was “practical” as the apex bank was simply shopping for cheaper cross-border payment options, rather than an “ideological” retreat from the US dollar. China’s central bank has positioned mBridge as a lower-cost rival to SWIFT.

Notably, the Oman agreements do not mention mBridge or platform membership, so it is not yet clear whether China has found a replacement for Saudi Arabia in the program.

Where the digital yuan push stands

mBridge remains the clearest vehicle for internationalizing the e-CNY. The platform uses distributed ledger technology to settle cross-border payments directly between central banks, cutting out correspondent banks.

As of early 2026, it had processed more than 4,000 transactions worth about $55.5 billion, with the digital yuan accounting for roughly 95% of settlement volume, Reuters reported citing Atlantic Council data. Its remaining participants include the central banks of mainland China, Hong Kong, Thailand and the UAE, with Macau integrating this year.

The push lines up with Beijing’s stated policy. In its 2026-2030 reform plan, the PBOC committed to “steadily develop” the digital yuan and widen use of the renminbi in trade and investment abroad, as Cryptopolitan reported.