China’s central bank has approved Standard Bank and Industrial and Commercial Bank of China to handle renminbi clearing across Africa, the latest move in Beijing’s drive to internationalize its currency and reduce reliance on the dollar-dominated global payment system. The two banks will jointly operate as the “Renminbi Clearing Bank of Africa,” covering 19 countries and giving firms direct access to China’s onshore capital markets. The announcement follows steps by the People’s Bank of China to expand offshore yuan business, including new authorizations for six state banks in Shanghai’s free trade zone. The arrangement is expected to simplify cross-border payments, improve liquidity, and support growing trade between Africa and China, which rose nearly 18% last year.
Reuters