Africa looks at yuan as alternative

Publication date:

August 22, 2023

Author:

chinadaily

Overview:

This article discusses the potential benefits of African countries increasing the presence of the Chinese yuan in their reserve currencies amidst currency devaluation against the US dollar. Li Xiuzhu from Standard Bank suggests that this move would help diversify reserve portfolios, especially since African nations heavily rely on the dollar, euro, and British pound sterling. By embracing the yuan, African countries could strengthen trade ties with China and mitigate supply-side risks, although Li cautions against the ambitious idea of adopting a single currency for the entire continent, instead advocating for enhanced intra-Africa trade and settlement capabilities.

Theme(s):

Diplomacy | Policy | Politics

Resource Type:

  • Government Publication
  • Traditional Media

    • Source Document(s):

    http://www.focac.org/eng/zfzs_1/202308/t20230822_11129958.htm

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