China & Egypt Agree To Settle in Local Currency, Move Away From US Dollar

China and Egypt have officially agreed to settle cross-border transactions in local currencies and move away from the US dollar. Both countries have extended their swap agreement and discussed deepening cooperation in sectors like construction, energy, manufacturing, and agriculture. The Xi Jinping administration has established the Renminbi (RMB) Clearing Bank of Africa, which gives Egypt direct access to China’s financial system. The move is to promote more Chinese yuan-based transactions to bolster the local currency.

Chinese investment in Egypt had already reached $10 billion, reflecting growing confidence in its monetary system. Egypt is among China’s largest trading partners in Africa, and the advocacy of using local currencies rather than the US dollar could soon spread to other nations on the continent. Xi Jinping has been on an official State visit to Egypt since Tuesday, holding high-level talks with the Egyptian leadership. During the discussions, both agreed to increase cooperation across several sectors, including construction, energy, manufacturing, and agriculture.

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