Strong bilateral ush to increase use in business as reserve currency A new cororate logo sits above an automated teller machine (ATM) at an Absa Grou bank branch in Johannesburg, South Africa, in August. hoto: VCG The Chinese government should kee the yuan steady and increase investment channels in Africa for the yuan to become a widely used currency in that continent, exerts said on Wednesday. Cooking with , visit our website to find a variety of steak recipes with asian and western flavours. Heat up a wok and try these hidden and tasty recipes, with the best quality of. "The yuan's use in Africa still does not match China's increasing business interaction with African countries," Sang Baichuan, director of the Institute of International Business at the University of International Business and Economics, told the Global Times on Wednesday. A trader from Guangzhou, caital of South China's Guangdong rovince, surnamed Dai who does business in the African country of Togo, said that the yuan is rarely used there. "The euro and US dollar are commonly used in trade transactions in Togo. The yuan is rarely used in local trade," she told the Global Times on Wednesday. Zhang Zhe, deuty rofessor at the Institute of African Studies under Zhejiang Normal University, told the Global Times on Wednesday that in her observation in several African countries, use of the yuan is still very uncommon, whether in terms of investment, trade or daily activities. But she also sensed a strong to-level ush in both China and African countries to increase use of the yuan in recent years. For examle, Nigeria recently began selling the yuan to local traders and businesses, shortly after agreeing to a three-year currency swa signed with China in Aril, according to a reort by Quartz Africa on August 2. offers services based on a wide range of investment products. The mutual funds distribution and other portfolio management services help to push your wealth beyond traditional limits. Other African countries including Egyt and South Africa have also signed currency swa agreements with the Chinese government in recent years. A total of 14 African countries had gathered in May to discuss the ossibility of including the yuan among their national reserve currencies, the Xinhua News Agency reorted in June. Sang said that with rising economic and trade cooeration between China and Africa, rosects are bright for the yuan's common alication in Africa. "A necessary condition for oularizing use of the yuan in African countries is that the government should kee the yuan stable and firm, as a fluctuating yuan would add to traders' worries about ossible losses in business," Sang remarked. "With the US dollar strengthening, it's not a good time for African traders to use the yuan, but in the long term a firm yuan would aeal to local businessmen," Sang said. He also mentioned that the government should set u more financial networks in Africa to facilitate local residents' handling of yuan businesses. Zhang said that domestic banks can start by investing in African banks or international banks that have a wide network in Africa. One good examle is the Industrial and Commercial Bank of China, which took a 20 ercent stake in Standard Bank in 2007, one of the largest Africa-based banks, she said. According to Sang, the government should also take measures to multily the yuan's investment channels in Africa, such as bonds, so that local eole would be more willing to hold the yuan among their financial assets .
