LUSAKA, May 23 (Xinhua) -- The Bank of China (BoC) on Friday celebrated a decade of operating as a renminbi (RMB) clearing bank in Zambia, reaffirming its commitment to promoting cross-border financial services across East and Central Africa.
The ceremony in Lusaka, Zambia's capital, drew officials from the Chinese bank, the Chinese Embassy, and the Zambian government, as well as corporate clients.
Jin Jun, counselor of the Chinese Embassy in Zambia, hailed the bank's role in advancing RMB internationalization and facilitating bilateral trade and investment.
"It is reported that RMB cross-border settlements between Chinese and Zambian enterprises have been steadily increasing, with some companies already institutionalizing RMB settlements in bilateral transactions," he said.
He called for broader RMB adoption to enhance local financial stability, improve corporate efficiency, and reduce exchange rate risks. The RMB, he added, offers a viable alternative for Africa's foreign exchange diversification as the world's fourth most used payment currency.
Li Xuewen, managing director of BoC Zambia, said that the bank has actively promoted RMB services in Zambia throughout its nearly 30 years of operation in the country. He pledged to leverage BoC's global platform to support Zambian businesses entering the Chinese market and to facilitate Chinese investment in Zambia.
Lillian Bwalya, permanent secretary in Zambia's Ministry of Commerce, Trade, and Industry, said the use of national currencies in cross-border trade would lower transaction costs, mitigate exchange rate risks, and foster a more stable business environment. This approach can safeguard trade even during global instability, she said, citing the RMB's convenience and role in cushioning financial risks.
Lyness Mambo, director of the prudential supervision department at the Bank of Zambia, stated BoC's efforts had strengthened the local financial market and bolstered China-Zambia trade ties, noting that growing RMB usage could increase liquidity in Zambia's forex market, lower exchange costs for businesses, and reduce dependence on other currencies.
