According to new research from South Africa-based Standard Bank, at least 40%, or $100 billion, of China’s trade with Africa will be denominated in renminbi by 2015. This amounts to more than the sum total of Sino-African trade in 2010. Additionally, at least $10 billion of Chinese investment into Africa will be denominated in renminbi over the same period.
The main benefits for Africa from the internationalisation of the mainland Chinese currency and greater renminbi-denominated trade will be cheaper funding and lower transaction costs, says Jeremy Stevens, Beijing-based economist with Standard Bank and author of the new paper titled BRIC-Africa the redback’s rise is an opportunity for Africa...
¬ Haymarket Media Limited. All rights reserved.
