RBZ governor demands that transaction between Zim and China be settled in Yuan

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By Business reporter

Trade and Investment between Zimbabwe and China can only grow at a faster pace if the two countries agree to use the Chinese currency as a settlement trade system, Reserve Bank of Zimbabwe (RBZ) Governor John Mangudya said.

Mangudya said the Central Bank is now working with the People’s Bank of China and some commercial banks in that country to ensure that this is realised.

He said this while presenting the country’s Trade and Investment guidelines at the China (Zhejiang)-Zimbabwe Business Forum Monday in Harare. Over 60 business representatives from the Zhejiang province are in the country to pursue some business opportunities.

Mangudya said the use of the Yuan was going to ease ways of doing business between the two counties.

“We need to make sure that the Chinese currency is found in Zimbabwe,” said the RBZ governor.

“Our dream, our vision is to have a Yuan settlement system that is between Zimbabwe and China as we move towards this enhanced, comprehensive economic corporation between Zimbabwe and China.”

He added, “We also need to move with speed in making sure that there is and there are settlements of transaction between Zimbabwe and China using Yuan as opposed to use of any other currencies.

“This will go a long way in increasing trade between Zimbabwe and China; it will go a long way in increasing investment in Zimbabwe and China and vice versa.”

Mangudya further said without settlement systems it would be very difficult to increase trade between the two countries.

“One day we also want Zimbabwe to be able to invest in China so that we do agriculture in China and our tobacco there,” he said.

He also told the delegates that in SADC they have got a payment arrangement which is called SADC integrated electronic settlement system “where SADC member states use basically the US and the South African Rand to settle trade transactions within the region.”