Inter-American Development Bank and Arab Monetary Fund Sign Memorandum of Understanding

Introduction to the Agreement

WASHINGTON, CMC – The Inter-American Development Bank (IDB) says it has signed a memorandum of understanding (Mo) with the Arab Monetary Fund (AMF) to strengthen cooperation on strategic issues for financial development in Latin America, the Caribbean, and the Arab region.

The agreement focuses on three flagship areas of collaboration: payment systems, climate finance, carbon markets, and the Public Sector Asset Management (CAsA Programme).

Key Areas of Collaboration

Payment Systems

Under the payment systems, the agreement calls for deepening cooperation between AMF’s Buna platform and the IDB’s payments work, including the FUSE initiative, which currently works at the local level only. This includes joint technical assistance and knowledge exchange to promote more efficient, interoperable cross-border payment systems.

Climate Finance and Carbon Markets

Regarding climate finance and carbon markets, advancing shared research and technical work on carbon pricing, green taxonomies, and fiscal incentives will be undertaken. The two institutions will also coordinate ahead of COP30 and collaborate through key events such as the AMF’s Green Finance Meeting and IDB-led climate forums.

Public Sector Asset Management

The CAsA Programme will support treasury modernization across the public sector through secondments, technical workshops, and advisory services focused on complex financial instruments and analytics.

Statements from IDB and AMF Leaders

“This agreement represents a significant milestone in strengthening ties between Latin America, the Caribbean, and the Arab world. By partnering with the Arab Monetary Fund, we’re deepening cooperation on real-time payment systems, advancing joint research on carbon markets and climate finance, and public sector asset management through treasury modernization,” said IDB President Ilan Goldfajn.

“Our collaboration with the Inter-American Development Bank reflects a shared commitment to advancing financial innovation, institutional development, and economic sustainability across our regions. This partnership will enable us to exchange expertise, enhance cross-regional dialogue, and deliver impactful capacity-building initiatives,” said Dr Fahad M. Alturki, Director General Chairman of the Board of the AMF.

Implementation and Expected Outcomes

The memorandum provides a platform for secondments, joint events, and coordinated technical assistance to foster innovation, improve institutional capacity, and drive sustainable finance.

Conclusion

The signing of the memorandum of understanding between the Inter-American Development Bank and the Arab Monetary Fund marks a significant step forward in promoting financial development and cooperation between Latin America, the Caribbean, and the Arab region. The agreement is expected to have a positive impact on the regions, driving innovation, improving institutional capacity, and promoting sustainable finance.

Frequently Asked Questions

What is the purpose of the memorandum of understanding?

The purpose of the memorandum of understanding is to strengthen cooperation between the Inter-American Development Bank and the Arab Monetary Fund on strategic issues for financial development in Latin America, the Caribbean, and the Arab region.

What are the key areas of collaboration?

The key areas of collaboration are payment systems, climate finance, carbon markets, and the Public Sector Asset Management (CAsA Programme).

What are the expected outcomes of the agreement?

The expected outcomes of the agreement include fostering innovation, improving institutional capacity, and driving sustainable finance in the regions.