Does RMB internationalization benefit Africa?

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Europe

00:47

Ten years after the global financial crisis, security of the financial market has become the focus of world leaders and experts. As an economic vibrant continent, Africa is carefully examined with its financial system and development.

Zhang Jinguo, Chief Executive Officer (CEO) of the China Construction Bank's Johannesburg branch, while speaking on CGTN's "Dialogue," warned that financial institutions and foreign companies should be cautious of foreign exchange risks.

With a growing Chinese business presence in Africa, more Chinese financial institutions are either setting up their own branches or creating joint ventures with local institutions. Zhang said that their services have helped many companies weather foreign exchange risks.

00:58

In the past few weeks, the emerging markets including South Africa, Sri Lanka, and Argentina have been at risk of an exchange rate crisis. Fears about currency crunches have caused jitters among investors around the world.

In view of the volatile currency market, Zhang further points out that with the growing internationalization of RMB, it's gradually becoming popular with both national banks and foreign investors.

"More and more countries prefer to store RMB as their storage currency. They want to benefit from China's development, not only for the currency issue but also that China wants to share (the experience) with them."

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