The world’s second-largest economy just decided, with one of its top African partners, to do away with the use of the US dollar

Key Points:

• China and Egypt have agreed to increase trade and investment settlements in their respective national currencies, moving away from reliance on the US dollar, as part of a broader de-dollarization strategy supported by the BRICS nations.
• During Chinese President Xi Jinping's visit to Egypt, the two countries expanded their local currency swap agreement and signed multiple memorandums of understanding to boost cooperation in sectors like construction, energy, manufacturing, and agriculture.
• The People’s Bank of China authorized banks to operate the Renminbi Clearing Bank of Africa, enabling African financial institutions direct access to China’s onshore payment system and facilitating yuan-based cross-border transactions.
• Chinese investment in Egypt has surpassed $10 billion, reflecting growing confidence and expanding business presence, with plans underway for a $2 billion integrated industrial complex in Egypt's Suez Canal Economic Zone focusing on renewable energy, automobile manufacturing, textiles, and chemical fibers.
• The visit marked the 70th anniversary of diplomatic relations between China and Egypt, highlighting strengthened economic ties and mutual development goals under both nations' leadership.