Zimbabwe sanctions use of Chinese Yuan as official currency


(Posted 02nd November 2016)

Come January 01st next year will the Chinese Yuan become an official currency in Zimbabwe following discussions held between the two governments during a state visit of the Chinese president.
This will make the Chinese currency an equal in Zimbabwe with the US Dollar, the South African Rand and the Botswana Pula with the Euro playing no role in this equation, perhaps a sharpish reminder of the negativity the European Union has show against Zimbabwe.
China has become Zimbabwe’s largest trading partner and investments are expanding, following President Xi JinPing visit to the country some time ago.
Looking East, after the windows to the West were locked by the Western powers, has become the remaining avenue to Zimbabwe, besides intra African trade, to export and import goods and the use of the Yuan is expected to facilitate this further. A write off of loans worth 40 million US Dollars too helped Zimbabwe at the time to find a sounder economic footing again.
Chinese tourist numbers too are growing as they are for Zambia and other neighbouring countries and Emirates is the one of the few airlines, besides Kenya Airways, offering daily connections from a number of Chinese cities via Dubai to Harare.