China's Hunan explores local currency settlement for trade with African countries

Central China's Hunan Province has conducted trials of local currency settlement to help African countries ease the pressure of cross-border settlement due to foreign exchange shortage, the provincial department of commerce has said.

Hunan has completed 12 small-amount barter deals with four African countries since 2021. Based on the successful transactions, the provincial customs, foreign exchange and taxation departments have proposed a pilot plan of local currency settlement for trade with African countries.

"The new settlement mode will hopefully expand China's import of African products, and encourage Chinese enterprises to do businesses with African counterparts," said Yang Yi, an official with the Hunan provincial department of commerce.