Mauritius Renminbi Clearing House to Facilitate African and Chinese Trade

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This file photo shows a bank employee working in Lianyungang, east China’s Jiangsu Province, Aug. 11, 2015. (Xinhua/Si Wei)

Mauritius is now the third largest clearinghouse for the Chinese renminbi (RMB), or yuan, in Africa, after South Africa and Zambia. The recently launched hub is expected to facilitate trade with China, not only for Mauritius, but also for the African region.

Port Louis, Dec. 28 (Xinhua) – Mauritius is now the third largest exporter of Chinese renminbi (RMB), or yuan, in Africa, after South Africa and Zambia. The center, which officially opened on December 16, aims to facilitate business with China, not only for Mauritius, but also for the African region, according to many financial experts.

The presence of the RMB hub in Mauritius is of “great interest” not only for the Mauritian domestic market but also for international business, especially “cross-border channels that pass through Mauritius,” said Daniel Essoo, CEO of Mauritius. the Mauritius Association of Banks, during a meeting of the Mauritius-China Economic Cooperation Forum.

Official figures show that China is the largest importer of goods from Mauritius. About 18 percent of Mauritius’s imports will come from China by 2021.

“The launch of the RMB clearing house is convenient for Mauritian importers to request Chinese suppliers to invoice them in RMB, and Mauritian banks can use the local RMB clearing house for their international settlement,” he said. Li Lianhong, CEO. Bank of China official in Mauritius.

Since most of the products imported into Mauritius come from China, “having this facility (RMB Clearing Center) here means it will be very easy and hopefully importers will start using the center.” and lower FX (foreign exchange) rates,” Essoo reiterated. “They can hold RMB balances and can start trading directly in RMB.”

However, Essoo found the RMB clearinghouse in Mauritius “even more interesting” from the perspective of regional and global integration.

“Mauritius already exists and has been part of the (African) regional program, and this idea is to integrate different payment systems with different financial systems so that Mauritius is really in the middle of this network of payment systems,” Essoo said.

“With the introduction of the RMB clearinghouse, Mauritius can become a bridge and hub connecting China and Africa,” Li said.

Li added that China has been Africa’s largest trading partner for more than 10 years, with trade between the two countries reaching 254 billion US dollars last year. “Mauritius has the opportunity and opportunity to become a bridge of economic cooperation and trade between Africa and China, and even between Africa and Asia,” she said.

According to the World Bank, RMB remittances will account for 2.7% of all remittances in 2021, and the number of RMB remittances has continued to increase since then. Currently, the RMB’s share in the International Monetary Fund’s special drawing rights basket has risen to around 14 percent in 2022.

“The RMB is the most important currency for emerging markets,” said Mardayah Kona Yerukunondu, first deputy governor of the Bank of Mauritius, adding that “the RMB is poised to become the world’s most important currency in the coming days.” .

The first deputy governor added that “when the RMB prison in Mauritius starts to strengthen, it will definitely have an impact on financial transactions, prosperity and overall economic development.”

Congratulating Mauritius as a regional financial hub, Essoo said, “We are very happy to be considered as one of China’s strategic pearl suppliers.”

“Having this crown, having this facility (RMB clearing center) means that RMB payments can spread out and increase the number of payments,” he said.

“The RMB clearing house is not just a business, but also a contribution we must make to facilitate the use of the RMB currency in transactions between China, Mauritius and Africa at a new level.” Li said. She finished the speech. ■

Source: https://hausa.news.cn/20221228/590a535c3c49467cae36f0bf8cbf17c5/c.html

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