Africa uses the yuan as their reserve
The Chinese currency, the yuan will be weighed into foreign exchange reserves by 17 central banks and 14 bankers in East Africa and South Africa. The discussion was conducted at a forum discussing the management of foreign exchange reserves in Harare, Zimbabwe.
The forum will take place from Tuesday-Wednesday, May 29-30 will be attended by deputy secretary and deputy governor of the central bank, as well as officials from the African Development Bank.
Participants will focus on weakening the external positions of most Macroeconomic and Financial Management Institutions of Eastern and Southern Africa (MEFMI) member countries due to the economic slowdown.
"Most of the countries in the MEFMI region have loans or grants from China and will make economic sense to pay in China's remittances," MEFMI spokeswoman Gladys Siwela-Jadagu was quoted by Xinhua as saying. This is an important reason for policy makers to strategize on Africa's economic progress by embracing China.
Europe is also interested
The countries included in MEFMI are Angola, Botswana, Burundi, Kenya, Lesotho, Malawi, Mozambique, Namibia, Rwanda, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe. Earlier this year, some central banks in Europe revealed plans to use the yuan as part of foreign currency reserves, given the potential of the Chinese currency as a unit in the world's major foreign exchange reserves.
"China is the largest trading partner in more than 130 countries in Africa, so it is important to get how to profit from new patterns of international trade," Siwela-Jadagu said. As its moves are more stable, the yuan could potentially be the main currency at the global level.
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