1 Day
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الاقتصادية
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Chinese yuan's growing role in Africa
The article discusses China's expansion in promoting the use of the yuan as a primary currency in Africa, aiming to reduce dependence on the US dollar. It explains that many African financial institutions are connecting to China's payment networks (CIPS), including Libya, which is seeking to join the system to facilitate direct yuan payments, trade financing, and remittances, as well as issuing yuan-denominated bonds to support reconstruction efforts. Other countries such as Zambia and Angola are also moving towards this system, signing currency swap agreements with China and restructuring debts in yuan. It is believed that expanding the use of the yuan will lower transaction costs and protect against Western sanctions. China is also attempting to build a global payment system based on the yuan, which could make the yuan more significant than the dollar in African trade, thereby strengthening China’s position as a key player in the future African economy.
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