Arab Today, arab today chinese yuans internationalization good news to zimbabwe
Last Updated : GMT 00:00:20
Arab Today, arab today
Arab Today, arab today

Chinese yuan's internationalization good news to Zimbabwe

Arab Today, arab today

Arab Today, arab today Chinese yuan's internationalization good news to Zimbabwe

Chinese yuan's
Harare - XINHUA

Already, Chinese currency yuan was given the legal status to circulate in Zimbabwe, where there has been no local currency since its demobilization amid hyper-inflation six years ago.

But the notes bearing China's founder Chairman Mao Zedong are rarely seen in the market, along with seven other legal tender foreign currencies in Zimbabwe. The sole dominating currency is the American greenback.

For a country that has been placed under U.S. sanctions for more than a decade, the development of a competitive alternative is much welcomed.

Zimbabwean economic commentators said Chinese yuan's internationalization, a lengthy process whose latest development include establishing an international payment system to joining International Monetary Fund (IMF)'s Special Drawing Right basket.

"It's a commendable move on the part of the Chinese," said Zimbabwe Investment Authority chairman and former bank owner Nigel Chanakira. "We now have a rival currency in a sense to the U.S. dollar."

He said that the latest introduced China International Payment System (CIPS) will help Zimbabwe to circumvent U.S. financial sanctions.

Yuan payments in cross border trade, direct investments, financing and personal remittances are accepted under the system.

Chanakira said several Zimbabwean firms have had their money seized by the United Sates Office of Foreign Assets Control as part of America's sanctions regime in place since 2001.

The U.S. Treasury Department has over the years intercepted payments running into millions of dollars due to Zimbabwean firms as part of its economic sanctions, analysts say.

"There are no sanctions with China and those banks that are affected by the U.S. sanctions can open direct currency trading accounts with Chinese banks without any upheavals or risk that their money can be seized," Chanakira said.

Former president of the Confederation of Zimbabwe Industries Charles Msipa hailed the yuan's internaitonalization, saying it will help democratize the global financial payment system.

"It's a good and welcome development that will help balance the world financial system," he said.

Observers say there are only a few Zimbabwean banks holding direct currency accounts with Chinese banks but this is likely to change.

China's ratio of global trade is significant and it was unnecessary for countries to go through third party currencies, Chanakira said, the cost of trade will be reduced significantly by direct yuan payments.

The amount of trade between Zimbabwe and China is sufficient to merit the reduction in trading costs. According to Chinese official source, annual bilateral trade between Zimbabwe and China has risen from 500 million U.S. dollars in 2010 to 1.24 billion U.S. dollars in 2014, with Zimbabwe maintaining trade surplus with since 2011.

Chinese Foreign Direct Investment into Zimbabwe has also jumped from 460 million dollars in 2011 to 601 million dollars in 2013.

The introduction of the CIPS was therefore expected to allay any exchange risk fears by Zimbabweans and spur yuan transactions between Chinese and Zimbabwean business people, Chanakira said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese yuans internationalization good news to zimbabwe Arab Today, arab today chinese yuans internationalization good news to zimbabwe

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today chinese yuans internationalization good news to zimbabwe Arab Today, arab today chinese yuans internationalization good news to zimbabwe

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday