Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Trump signs executive order on changing name of Department of Defense to Department of War
Syrian media: A car bomb detonated in Al Mashhad Street in Aleppo, potential casualties reported
Lebanese government: The army will act within the framework of the relevant decision during the August 5 session, but it has the right to exercise operational discretion
Lebanese government: The Army Commander outlined the restrictions related to the implementation of the plan, the first of which is Israeli attacks
Lebanese government: The Lebanese Army will begin implementing the plan under the available capabilities
Lebanese government: Any progress in implementing the US envoy's paper is contingent on the Israeli side's commitment
Lebanese government: Lebanon approved the paper's objectives in the cabinet and prepared the army's plan, but the Israeli side did not take corresponding steps
Lebanese government: The US envoy’s paper stipulated coordinated steps from all parties, and its implementation is contingent on the approval of the concerned parties
Lebanese government: 'Israel's' continued violations expose regional security and stability to grave risks
Lebanese government: The army command will submit a monthly report to the Council of Ministers

China advances yuan in Africa to challenge US dollar

  • By Al Mayadeen English
  • Source: South China Morning Post
  • 17 Jul 2025 06:44
  • 1 Shares
3 Min Read

China is strengthening financial partnerships with African countries as part of a strategic push to internationalise the yuan and reduce dependence on the US dollar in trade and investment.

Listen
  • x
  • China advances Yuan in Africa to challenge US Dollar
    A man walks by a money exchange shop decorated with Chinese yuan banknotes and other countries' currency banknotes at Central, a business district in Hong Kong, China, on August 6, 2019. (AP)

During Chinese Premier Li Qiang’s recent visit to Cairo, the People’s Bank of China and Egypt’s central bank signed several agreements aimed at expanding yuan usage in bilateral transactions, the South China Morning Post (SCMP) reported. 

These include exploring currency swap arrangements, cooperation on electronic payments, and issuing yuan-denominated “panda bonds” by overseas companies in China’s domestic markets. A key feature of these agreements is the promotion of China’s Cross-border Interbank Payment System (CIPS), an alternative to the US-dominated SWIFT financial network. This will enable banks operating in the China-Egypt TEDA Suez Economic and Trade Cooperation Zone to conduct cross-border transactions directly in yuan, bypassing the US dollar.

Expansion of Yuan use across Africa

Egypt joins other African countries such as Nigeria, South Africa, and Angola that have signed similar yuan-based trade and finance deals with China. Nigeria renewed its 15-billion-yuan (US$2 billion) currency swap with China in December. South Africa’s currency swap with Beijing dates back to 2015 and was recently supplemented by a 2.1 billion yuan loan agreement with the China Development Bank.

China’s growing presence in Africa aligns with its broader goal of testing the yuan’s internationalisation in regions where its trade influence is significant. According to the African Export-Import Bank (Afreximbank), China now accounts for 20% of Africa’s global trade—up from 5% two decades ago. Afreximbank recently joined CIPS to facilitate faster and more autonomous yuan transactions within China-Africa trade.

Related News

Will the idea of pan-Africanism survive migration, economic crises?

Study links deforestation to over half a million deaths in two decades

Read more: Unprecedented decline in Euro usage signals shift to USD, Yuan

Challenges and strategic considerations

Experts see Africa as a suitable testing ground for the gradual internationalization of the yuan. Lauren Johnston, senior research fellow at the AustChina Institute, explained that although China is a major global trader, its currency remains limited in global reach due to capital controls and other policy constraints.

“Any change related to internationalising the RMB will be incremental,” Johnston said, citing complex factors such as exchange rates, growth rates, and capital account policies.

The effort to promote yuan usage comes amid rising geoeconomic tensions over the US-led financial system. The freezing of Russia’s foreign currency reserves after its invasion of Ukraine highlighted vulnerabilities for countries dependent on US or EU-controlled financial networks. This has increased interest among BRICS nations, including Egypt and South Africa, in developing alternatives outside Western jurisdiction.

Read more: Taliban discuss with Russia, China transactions via local currencies

Africa’s growing role in China’s yuan strategy

South Africa’s Standard Bank, Africa’s largest bank and partly owned by China’s Industrial and Commercial Bank (ICBC), has adopted CIPS to facilitate direct yuan interbank payments. Analysts suggest that such initiatives may accelerate a broader shift in China-Africa financial relations.

Aly-Khan Satchu, a sub-Saharan Africa geoeconomic analyst, noted that yuan transactions currently represent a small share of China-Africa trade but have the potential to expand significantly. “This potentially could go to 100 per cent of the trade number,” he said, emphasizing that the trend is moving steadily toward greater yuan adoption, even if displacing the US dollar remains a longer-term challenge.

Read more: US Treasury chief rejects yuan as reserve currency

  • Africa
  • Yuan
  • SWIFT
  • CIPS
  • US dollar
  • China

Most Read

Al Mayadeen English

Hezbollah’s weapons and the lessons of Syria, PLO, and Algeria

  • Politics
  • 2 Sep 2025
This Jan. 31, 2019 file photo, shows an oil platform in the Leviathan natural gas field, in the Mediterranean Sea off the Palestinian coast. (AP)

Netanyahu freezes $35 bln gas deal with Egypt over troops in Sinai

  • Politics
  • 2 Sep 2025
The Coming War On Iran Will Be Regional, Perhaps International

The coming war on Iran will be regional, perhaps international

  • Opinion
  • 2 Sep 2025
ap

Germany blocks EU push to sanction 'Israel' over war on Gaza

  • Politics
  • 31 Aug 2025

Coverage

All
The Ummah's Martyrs

Read Next

All
Senators demand end to GHF amid ethnic cleansing allegations
Palestine

Democratic senators call GHF Gaza aid scheme deadly, urge funding cut

Finnish flag in an undated photo (AFP)
Politics

Finland backs UN declaration supporting 'two-state solution'

UN Probe: Sudan’s RSF committed ‘myriad crimes against humanity’
Politics

Sudan’s RSF committed ‘myriad crimes against humanity’: UN probe

How a secret SEAL team 6 mission in North Korea collapsed under fire
Politics

How a covert US SEAL Team 6 mission in DPRK collapsed under fire

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS