Latest
 
  • All Share : 53050.76
    UP 0.80%
    Top40 - (Tradeable) : 47033.77
    UP 1.07%
    Financial 15 : 15038.05
    UP 1.63%
    Industrial 25 : 72098.08
    UP 0.85%
    Resource 10 : 31218
    UP 0.66%

  • ZAR/USD : 15.6439
    DOWN -0.42%
    ZAR/GBP : 22.8264
    UP 0.41%
    ZAR/EUR : 17.4444
    DOWN -1.09%
    ZAR/JPY : 0.1418
    DOWN -1.12%
    ZAR/AUD : 11.2486
    DOWN -0.90%

  • Gold US$/oz : 1234.3
    DOWN -1.11%
    Platinum US$/oz : 1007
    DOWN -0.30%
    Silver US$/oz : 16.3
    DOWN -0.31%
    Palladium US$/oz : 542
    DOWN -1.09%
    Brent Crude : 48.91
    UP 1.05%

  • All data is delayed by 15 min. Data supplied by Profile Data
    Hover cursor over this ticker to pause.

Tue May 24 17:48:19 SAST 2016

Zimbabwe to expand use of yuan as China cancels $40 million debt

AFP | 21 December, 2015 17:11
One-hundred Yuan notes. File photo.
Image by: LEE JAE-WON / REUTERS

Zimbabwe said Monday that China plans to cancel $40 million in debts as the southern African country seeks to expand use of the yuan in its multi-currency economy.

"They (China) said they are cancelling our debts that are maturing this year and we are in the process of finalising the debt instruments and calculating the debts," Minister Patrick Chinamasa said in a statement.

Chinamasa also announced that Zimbabwe will officially make the Chinese yuan legal tender as it seeks to increase trade with Beijing.

Zimbabwe abandoned its own dollar in 2009 after hyperinflation, which had peaked at around 500 billion percent, rendered it unusable.

It then started using a slew of foreign currencies, including the US dollar and the South African rand.

The yuan was later added to the basket of the foreign currencies, but its use had not been approved yet for public transactions in the market dominated by the greenback.

Use of the yuan "will be a function of trade between China and Zimbabwe and acceptability with customers in Zimbabwe," the minister said.

Zimbabwe's central bank chief John Mangudya was in negotiations with the People's Bank of China "to see whether we can enhance its usage here," said Chinamasa.

China is Zimbabwe's biggest trading partner following Zimbabwe's isolation by its former Western trading partners over Harare's human rights record.

In reaction veteran President Robert Mugabe adopted a "look East policy", forging new alliances with eastern Asian countries and buttressing existing ones.

In early December, Chinese President Xi Jinping stopped over in Zimbabwe in a rare trip by a world leader to the country, and presided over the signing of various agreements, mainly to upgrade and rebuild Zimbabwe's infrastructure such as power stations.

SHARE YOUR OPINION

If you have an opinion you would like to share on this article, please send us an e-mail to the Times LIVE iLIVE team. In the mean time, click here to view the Times LIVE iLIVE section.