China and Oman have signed a $4.47 billion currency swap agreement and pledged to deepen financial and economic cooperation, as Chinese President Xi Jinping warned against turning West Asia into an arena for great-power rivalry and geopolitical conflict.

The People’s Bank of China (PBOC) announced on Monday that it had signed a bilateral currency swap agreement worth 30 billion yuan ($4.47 billion), or 1.5 billion Omani rials, with the Central Bank of Oman during Sultan Haitham bin Tariq’s state visit to Beijing.

According to the PBOC, the agreement will remain in force for five years. The two central banks also signed a memorandum of understanding (MoU) to strengthen cooperation on digital payments and central bank digital currencies.

The agreements are aimed at deepening monetary and financial cooperation between Beijing and Muscat, facilitating cross-border digital payments, and maintaining financial market stability, the PBOC said.

The agreements were signed as the two countries expanded investment partnerships worth billions of dollars and reaffirmed plans to align China’s Belt and Road Initiative (BRI) with Oman Vision 2040 across finance, energy, technology, security, and trade.

During the visit, the two sides signed 16 documents covering a range of areas, including satellite navigation, green development, supply chains, science and technology, media, and securities and futures regulation.

Araghchi welcomes Xi’s initiatives, hails China-Iran strategic partnership

Iran’s Foreign Minister Abbas Araghchi welcomes initiatives proposed by Chinese President Xi Jinping for the region.

In talks with Sultan Haitham, Xi underscored the need to safeguard regional peace and stability, warning against the escalation of geopolitical competition in West Asia.

“The Middle East [Persian] Gulf region should not become an arena for great-power rivalry and geopolitical conflict. Peace and stability in the region require joint nurturing and protection by all parties,” Xi said, according to China’s Foreign Ministry.

He also reaffirmed Beijing’s commitment to ending the US war on Iran, expressing readiness to deepen coordination with regional countries, including members of the [Persian] Gulf Cooperation Council (GCC), to restore peace and ensure long-term stability.

Meanwhile, China’s Foreign Ministry announced that its special envoy for West Asia, Zhai Jun, would visit Iran, Oman, and Saudi Arabia this month as Beijing continues its diplomatic efforts to promote regional peace and stability.