On Dec 16th, 2022, the RMB clearing center was officially launched at the Bank of Mauritius (BoM). This means Mauritius now has the third RMB clearing center in Africa, following South Africa and Zambia.
Financial experts said this will not only boost the trade between Mauritius and China but also between China and the African region. The First Deputy Governor of BoM added that RMB will become a very important international policy in days to come.
◆ Importance of RMB Clearing Service in Mauritius:
Easier and Cheaper Chinese Imports in Mauritius
Daniel Essoo, CEO of the Mauritius Bankers Association, echoed that having the center meant that “it will be much easier and hopefully much cheaper” for importers to use the center and reduce the foreign exchange cost. Moreover, importers may “keep balances in RMB” and “start trading directly in RMB”. BoM First Deputy Governor Mardayah Kona Yerukunondu added that this will also lead to ease of payment in Mauritius’s domestic market. Without the RMB clearance facility, it was very expensive for banks and traders to transact in other currencies. And now, it’s “very good news from an ease-of-making-payment perspective.” Linking China to Africa in Cross-border Trade For more than 10 years, China has been Africa’s largest trading partner with bilateral trade rising to a record high of US$254 billion. “Mauritius has the potential and the ability to become a bridge for economic and trade cooperation between Africa and China, and even between Africa and Asia,” added Li. Esso considered the RMB clearing center to be more meaningful from the perspective of regional and global connectivity. The center “can link up different payment systems with different financial systems so that Mauritius is really at the heart of this web of payment systems,” Esso added. Chinese Currency Will Become More Important Globally Mardayah also quoted that RMB “is the most important currency for emerging markets”, and concluded that it’s “poised to become a very important currency in the world in the days to come." ◆ What Are the Opportunities Behind There is no denying that this clearing center will have a beneficial impact on economic relations between Africa and China, and even Asia. For importers, the greater ease of direct settlement and transactions in RMB will save them costs. In addition, it may not be a bad idea for them to align and strengthen business strategies in Mauritius, Africa, and Asia as a result of more diversified financial services. On the other hand, Chinese product suppliers and design service providers can invoice in RMB and have access to more business opportunities. Source: 1. China Daily 2. Xinhua Net 3. Bizweek.mu 4. Naija New BuildMost is an O2O platform where you can find one-stop hotel solutions, from hospitality product and facility supply, to hotel interior design, architecture planning and schematic design, landscape design, operational advice etc.
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