Zimbabwe stands to benefit from the introduction of China International Payment System as it may cushion it from the impact of United States Sanctions that have led to confiscation of funds belonging to some Zimbabwe firms by the office of the foreign assets control.
Payments of millions of dollars going to Zimbabwe or from the country have been appropriated when passing through the existing international payments system in New York.
China’s new clearing platform is bound to bring relief to businesses that have endured sanctions.
“This provides an opportunity that we could now as Zimbabweans start now quoting our clients in china currency so that we avoid this hostile arrangement that is between Zimbabwe and United States. Zimbabwe has an alternative. When this becomes fully functional our best bet is to use China.” Said Calisto Jokonya, an industrialist in Zimbabwe
Zimbabwe accepts the Chinese Yuan as one of the currencies for the legal tender. China’s venture into international payments will help convert its economic growth into financial clout placing the yuan on par with the globally renowned green back. It could prove easy for the currency to gain a foothold, particularly in Africa where the Asian giant has emerged as major trading partner.
Last year, China accounts for 1.1 billion trade with Zimbabwe last year, importing products such as tobacco, cotton and minerals.