Africa May Shift to Using Yuan as Its Reserve Currency, Here’s Why…(Trade Wars=Shooting Wars…)

Wednesday, May 30, 2018
By Paul Martin

Chinese financial analyst Liu Ying, while addressing China’s drive to substantially increase its investments in Eastern and South Africa in an interview with Sputnik, did not rule out that at the end of the day, these countries will abandon the use of the US dollar.

Liu Ying of the Chunyang Institute of Financial Studies in China pointed to the fact that the Chinese yuan is already “widely used” in trade transactions in Africa.

He recalled that the yuan is also used in the field of investment and financial markets as well as the gold and forex reserves of African countries which Liu said could be formed in yuan rather than dollars.

“The construction of basic infrastructure in Africa, including railways and [economic] clusters also stipulates the use of the yuan,” Liu pointed out.

He claimed that in the face of rising interest rates and a program to reduce the balance of the Federal Reserve System, “the outflow of the dollar is an inevitable situation.”

>”Therefore, the choice of the yuan is a logical and timely measure for Africa. The yuan is a very stable currency capable of providing support and security in trade settlements, financial investments and the creation of reserves,” Liu emphasized.

The Rest…HERE

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