Tanzania: Five percent of Tanzania’s forex reserve to be in Chinese currency

 

The Bank of Tanzania governor, Prof Benno Ndulu, said the government’s decision to set aside five per cent of foreign currency reserve in Chinese currency, Yuan has widened opportunity for reaping more benefits from bilateral trade between the two countries, especially the purchase of Chinese bonds.

Speaking to the media at the sideline of the forum organised by Financial Management Institute for Eastern and Southern Africa (MEFMI), the Band of Tanzania chief executive said the country’s participation in international bonds market should focus more on Chinese currency or so called Renminbi because of the current conditions of global economy.

“The yuan has become the most important foreign currencies in international stock market trading. Our experience has shown that we have benefitted much from trading in yuan in the international bonds market,” Prof Ndulu said.

The International Monetary Fund (IMF) approved yuan at the end of last year into its elite reserve currency, in a decision described as “an important milestone” for the world’s second largest economy.