Monday, 28 December 2015

The Future of Chinese Yuan in Zimbabwe

The Future of Chinese Yuan in ZimbabweZimbabweans might very soon shop and buy things, travel and visit new places, satisfy needs for better health with the Chinese currency Yuan. The government echoed that the country will approve the Chinese currency, subsequent to the cancellation of about $40 million in debt.

Since 2009, Zimbabwe has used the dollar and the rand in lieu of its own currency, which it gave up after hyperinflation of more than 5,000% made it basically insignificant. This year, several key African currencies have taken a substantial hit, as economic growth slows, and falling prices for major export commodities reduce the flow of dollars into the continent.

China has become the largest investor in Zimbabwe, which has been shirked by the West over its human rights record and is struggling to emerge from a deep 1999-2008 recession that forced the government to ditch its own currency in 2009.

Zimbabwe's Finance Minister Patrick Chinamasa said the use of the yuan "will be a function of trade between China and Zimbabwe and acceptability with customers in Zimbabwe".

"They (the Chinese) said they are cancelling our debts that are maturing this year and we are in the process of finalizing the debt instruments and calculating the debts," Chinamasa said in a statement, quoted by Chinese news agencies.

On a rare visit to Harare by a Chinese leader, President Xi Jinping observed the signing of 10 economic agreements earlier this month, including a $1bn loan to expand Zimbabwe's largest thermal power plant. Read More...

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