The Central Bank of Zambia wants to diversify its reserve currencies and would consider opting for the Yuan or the Renminbi (Chinese currency) alongside the US Dollar.
“Usually most of our bonds are in dollars, but we also have some reserves in euros or pounds sterling. Gold is another option and we are also considering holding renminbi, ”Bank of Zambia Governor Denny Kalyalya said on Thursday at a press briefing.
In recent years, the yuan (RMB) has attracted more and more interest in Africa, as it is considered a currency that can facilitate trade and investment between China and the continent, where Nigeria and South Africa have already included the RMB in their foreign exchange reserve.
For some African experts, this adoption of the Chinese currency is becoming more and more inevitable and fear, in the long term, that the yuan will overshadow the flagship currency of international trade, the dollar.
For its part, China is keen on promoting the internationalization of its currency. If the international settlements of African countries are made mainly in American dollars, yet the trade of the black continent is less developed with the United States than with China.
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