Yuan Reaches African Projects

Beni Suef19 African countries can now make yuan payments without New York or London banks.

Payments through China’s Cross-Border Interbank Payment System could cut conversion costs by up to 4%, political scientist Nadia Helmy estimates.

China’s central bank authorised Standard Bank and a Chinese lender as Africa’s yuan-clearing bank this year.

Helmy says varying banking laws, thin yuan liquidity and weak digital infrastructure limit adoption.

At least 22 African countries face debt distress or high risk of it, UN and development-agency reports say.

Sources: South China Morning Post