Yuan Gains Ground as China Pushes Currency Diplomacy Across Africa
China is accelerating its efforts to internationalize the yuan, with Africa emerging as a strategic launchpad. Recent agreements between the central banks of China and Egypt mark a significant step, enabling yuan-based trade, expanding China’s UnionPay system in Egypt, and integrating China’s SWIFT alternative, the Cross-Border Interbank Payment System (CIPS), into Egypt’s payment system. Egypt now joins countries like South Africa, Nigeria, and Angola in adopting yuan-denominated transactions for trade and investment. These moves align with a broader pivot by African nations toward China and BRICS, as they seek alternatives to Western financial systems. Analysts say Africa offers an ideal testing ground due to its deep trade ties with China and limited access to Western currencies.
Business Insider Africa
