2018年CRI African countries discuss using RMB as reserve currency

 

Finance officials from 14 nations in eastern and southern Africa have gathered in Zimbabwe, discussing the possibilities of using the Chinese yuan as a reserve currency in the region.

They are also vowing¹ to use the Chinese currency more often with the growing relationship between China and Africa.

CRI's correspondent Gao Junya brings the details from Harare, Zimbabwe.

Seventeen top central bankers and government officials have met at a forum² held by the Macroeconomic and Financial Management Institute of Eastern and Southern Africa or MEFMI, an intra-governmental organization of fourteen eastern and southern African nations.

High on the agenda has been the discussion on the use of the renminbi as a reserve currency for the region.

MEFMI Executive Director Caleb Fundanga says it's necessary to use the yuan as a reserve currency as China is Africa's largest trading partner and the bilateral³ relationship is gaining momentum⁴.

"The general conclusion is that we should use the yuan more because its time has come. We are doing more business (with China) so it's natural that we use the currency of the country with which we are trading. Just the way we have been using the (U.S.) dollar and the Euro, we want to use the Chinese currency more in our transactions because it is to our benefit."

Fundanga suggests the use of the yuan can protect the region against currency volatility⁵ and reduce exchange loss.

He also says as China is providing financing for African infrastructure⁶ projects and some of them come as loans, it's convenient to repay the loans with the yuan.

"One of the issues we discussed though was that sometimes if you have borrowed from China they want to bill you in U.S. dollars. Now we are saying our government must start discussing with Chinese enterprises (and) government so that we're billed in yuan and then we can pay in yuan. Because there is no point if we start keeping our reserves in yuan but we're billed in dollars. It is no good."

Fundanga admits challenges exist and a lot needs to be done in order to take advantage of the new situation as the importance of yuan is increasing every day.

"I think what we need to do is more information about who is active in the yuan market. If we put the yuan as a reserve currency, we have to invest it. We can't just pack it in a room. So in order to invest the Chinese currency, you need to know the products that you can invest your money. Also the returns. What percentage do you get by investing yuan?"

The organization is planning to invite Chinese experts to attend future discussions, pushing for the drive to take the Chinese Yuan as a reserve currency.

The institute is working closely with the ministries⁷ of finance and central banks in the two regions, providing them with financial advice.

For CRI, I'm Gao Junya reporting from Harare Zimbabwe.

1 vowing   

起誓，发誓（vow的现在分词形式）

参考例句：

• President Bush is vowing to help Minneapolis rebuild its collapsed bridge. 布什总统承诺将帮助明尼阿波利斯重建坍塌的大桥。
• President Bush is vowing to help Minneapolis rebuild this collapse bridge. 布什总统发誓要帮助明尼阿波利斯重建起这座坍塌的桥梁。

2 forum   

n.论坛，讨论会

参考例句：

• They're holding a forum on new ways of teaching history.他们正在举行历史教学讨论会。
• The organisation would provide a forum where problems could be discussed.这个组织将提供一个可以讨论问题的平台。

3 bilateral   

adj.双方的，两边的，两侧的

参考例句：

• They have been negotiating a bilateral trade deal.他们一直在商谈一项双边贸易协定。
• There was a wide gap between the views of the two statesmen on the bilateral cooperation.对双方合作的问题，两位政治家各自所持的看法差距甚大。

4 momentum   

n.动力，冲力，势头；动量

参考例句：

• We exploit the energy and momentum conservation laws in this way.我们就是这样利用能量和动量守恒定律的。
• The law of momentum conservation could supplant Newton's third law.动量守恒定律可以取代牛顿第三定律。

5 volatility   

n.挥发性，挥发度，轻快，（性格）反复无常

参考例句：

• That was one reason why volatility was so low last year.这也是去年波动性如此低的原因之一。
• Yet because volatility remained low for so long,disaster myopia prevailed.然而，由于相当长的时间里波动性小，灾难短视就获胜了。

6 infrastructure   

n.下部构造，下部组织，基础结构，基础设施

参考例句：

• We should step up the development of infrastructure for research.加强科学基础设施建设。
• We should strengthen cultural infrastructure and boost various types of popular culture.加强文化基础设施建设，发展各类群众文化。

7 ministries   

（政府的）部( ministry的名词复数 )； 神职； 牧师职位； 神职任期

参考例句：

• Local authorities must refer everything to the central ministries. 地方管理机构应请示中央主管部门。
• The number of Ministries has been pared down by a third. 部委的数量已经减少了1/3。