Egypt, China central banks sign pacts to boost yuan use, payment systems

The central banks of Egypt and China on Tuesday signed three memoranda of understanding aimed at promoting the use of the Chinese yuan and expanding electronic payment cooperation, the Central Bank of Egypt (CBE) said in a statement.

The signings took place after a meeting between CBE Governor Hassan Abdalla and his counterpart from the People’s Bank of China, Pan Gongsheng, at the CBE’s headquarters in Cairo during the Chinese official’s current visit to Egypt.

During the talks, the two officials discussed several key topics, including a currency swap agreement, settling payments in local currencies, Egypt’s issuance of “Panda” bonds in the Chinese market, and linking their respective payment systems, the statement said. They also affirmed the importance of increasing the presence of each other’s banks to encourage joint investment.

One of the agreements was signed between Suez Canal Bank, TEDA China-Africa Investment Co., and CIPS Co. Ltd., the operator of China’s Cross-border Interbank Payment System. It aims to promote and encourage the use of the Chinese yuan within the China-Egypt Trade and Economic Cooperation Zone.