China has appointed First Abu Dhabi Bank as its second yuan clearing bank in the United Arab Emirates, marking a new phase in financial cooperation and currency internationalisation, reports London's Financial Times.

The People's Bank of China signed a clearing agreement with First Abu Dhabi Bank on Tuesday, officially designating it as a yuan clearing institution. The announcement was made by deputy governor Xuan Changneng during the 2025 Annual Financial Street Forum in Beijing.

The bank joins the Agricultural Bank of China's Dubai branch, which was named the first yuan clearing bank in the UAE in 2016. The move to select a local institution for the role is a first for the region and underscores efforts by Beijing and Abu Dhabi to deepen financial ties.

Xuan said the appointment supports China's strategy of high-level opening-up and reflects its aim to share development opportunities globally.