Zimbabwe has signed an agreement with China that will see the Chinese currency, the yuan, being used for public transactions in Zimbabwe, according to a report byReuters Africa.
According to the report, the use of the yuan will help the country to pay off its debt to China, which stands at $40 million (R668 million).
Francis Ngwenya, President of the Zimbabwe Tourism Council, told Tourism Update that Chinese tourists would soon be able to pay for services in Zimbabwe using the yuan. However he added that it would take time to distribute the currency through the banks. No timeline for the introduction of the yuan has been set.
Ngwenya said the introduction of the yuan would help to grow the Chinese market and that currency risk would subsequently be removed from the tourism packages to China.
“Zimbabwe is a multi-currency country and the introduction of the yuan will create easier pricing options and businesses will be able to have rand, dollar and yuan accounts.”
Source: Tourism Update
