Economists and policymakers from 14 African nations will debate whether or not the yuan should qualify as a reserve currency for the continent, Xinhua reports, as the countries address how to deal with the region’s largest trading partner.
The issue will be raised at a forum in Harare, Zimbabwe, taking place across Tuesday and Wednesday for the so-called MEFMI (Macroeconomic and Financial Management Institute of Eastern and Southern Africa) states and representatives of the African Development Bank.
“Most countries in the MEFMI region have loans or grants from China and it would only make economic sense to repay in renminbi,” said MEFMI spokesperson Gladys Siwela-Jadagu.
“This is the reason why it is critical for policy makers to strategise on progress that the continent has made to embrace the yuan which has become what may be termed ‘common currency’ in trade with Africa.”
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