Grow­ing mo­men­tum to adopt Chi­nese Yuan as re­serve cur­rency in Africa

Zambian Business Times - - PUBLIC POLICY & FISCAL -

African cen­tral bank lead­ers are cur­rently dis­cussing whether to hold the yuan as part of their for­eign re­serves, high­light­ing the Chi­nese money’s rise as one of the world’s ma­jor re­serve cur­ren­cies.

Gov­ern­ment of­fi­cials from 14 African na­tions in east­ern and south­ern Africa are meet­ing to­day (May 29) in the Zimbabwean cap­i­tal Harare to dis­cuss sov­er­eign re­serve man­age­ment, ac­cord­ing to a re­port from the of­fi­cial China press agency Xin­hua. The fo­rum is be­ing held by the Macroe­co­nomic and Fi­nan­cial Man­age­ment In­sti­tute of East­ern and South­ern Africa (MEFMI), a re­gional es­tab­lish­ment with mem­bers in­clud­ing An­gola, Kenya, Tan­za­nia, Zam­bia, and Tan­za­nia. Be­sides strate­giz­ing on how to im­prove the weak­ened ex­ter­nal po­si­tions of mem­ber na­tions dur­ing the global eco­nomic down­turn, pol­i­cy­mak­ers will also de­bate how to keep pace with large shifts in the global econ­omy, where China has risen as a dom­i­nant and dis­rup­tive player.

“Most coun­tries in the MEFMI re­gion have loans or grants from China and it would only make eco­nomic sense to re­pay in ren­minbi (Chi­nese yuan),” MEFMI spokesper­son Gla­dys Si­wela-Jadagu said. “With China as the largest trad­ing part­ner of over 130 coun­tries, the main chal­lenge for African coun­tries is how to ben­e­fit from the new pat­tern of in­ter­na­tional com­merce,” she added.

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