Angola’s central bank has authorized local banks to use China’s yuan to meet foreign currency reserve requirements, adding it to the existing list of eligible currencies alongside the US dollar, euro, and South African rand. Mandatory reserves are funds banks must hold with the central bank to promote financial stability and manage liquidity. The directive, issued this month, reflects the yuan’s growing importance in Africa, as well as China’s position as the continent’s largest trading partner and a major source of infrastructure financing. The move also aligns with broader efforts across emerging markets to reduce dependence on the US dollar amid concerns over sanctions, transaction costs, and shifting global economic dynamics.
Reuters