Gift Mugano, a trade expert and lecturer at the Nelson Mandela Metropolitan University, told Africa Renewal that the addition of the RMB to the basket of currencies would only consolidate Zimbabwe’s bilateral relations with China rather than boost trade, and help China’s quest to make its currency popular. In 2013, trade between China and Zimbabwe amounted to $1.1 billion. In announcing the decision to adopt the yuan and other currencies, the then Reserve Bank of Zimbabwe acting governor, Charity Dhliwayo, said that the southern African country’s trade and investment with China, India, Japan and Australia “had grown appreciably.”Ĭhina is Zimbabwe’s third largest trading partner after South Africa and the European Union, and until recently was the biggest buyer of its tobacco. Since then, it has been using a basket of currencies dominated by the US dollar. Zimbabwe abandoned its currency in 2009 when it was rendered worthless by excessive inflation. In March this year Zimbabwe joined a growing list of countries in Africa and the world using the Chinese currency, yuan, also known as remnibi (RMB), as one of its official currencies after its central bank added the RMB, the Japanese yen, the Australia dollar and the Indian rupee to the existing basket of currencies.
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