Chinese RMB for more flexibility and choices in trading currency |03 August 2018

China’s currency, the Chinese renminbi (RMB) can now be used in the trade flows that exist between Seychelles and China, the Governor of the Central Bank of Seychelles (CBS) Caroline Abel has announced.

She was talking after the official launch on Tuesday of a series of workshop to create more awareness about the Chinese currency, while also focussing on how Seychelles can use the RMB to effect payments.

The workshops which are being led by a four-member delegation from the Industrial and Commercial Bank of China (ICBC) are taking place at the Guy Morel Training Room at the CBS building and will gather officials of the bank, the Ministry of Finance, Trade, Investment and Economic Planning, the Seychelles Investment Board, the Seychelles Pension Fund, as well as representatives of various banks and financial institutions and the local business community.

Secretary of state in the Ministry of Finance, Trade, Investment and Economic Planning Patrick Payet and principal secretary for Finance Damien Thésée were also present at the launch.

Since October 2016, the International Monetary Fund (IMF) has added China’s currency, the RMB to the basket of reserve currencies, joining the U.S. dollar, euro, Japanese yen, and British pound as currencies that make up the Special Drawing Right (SDR).

The SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries.

Ms Abel explained that with such status, the RMB can now be used to make payment in any commercial transaction with china, or vice-versa in case of transaction for the tourism industry, with the increase of Chinese visitors in the country.

She added that the main aim of the workshops is to create awareness about the Chinese currency and status, thus encourage more transaction in RMB.

Ms Abel further added that since gaining its new global status, the Chinese currency has been part of the country’s reserve.

This, she said, will boost the confidence of the financial system in case of future needs, ensuring that the CBS can land a hand as it already has the currency in its financial reserve.

Ms Abel also explained that with the evolution in commerce, the CBS always considers all possible ways to boost its reserve and with its new status, the RMB will sure help the country’s economy, especially in terms of reduction in the cost of importation.

“For us, helping in the diversification of payments for trade purposes is important, so if a portion of the demand of dollars of today that goes directly to china can be done in RMB, we will definitely see a reduction in the demand for dollars”, added Ms Abel.

This, she said, in the long term will help lessen the pressure on the dollar exchange rate.

“The is the whole idea of providing the flexibility and increasing the choices of currency that we can make payments”, further added Ms Abel

She concluded by confirming that the end goal is to convince the public and business community that while dollars and euros are traditionally the key currencies  in trade , there are others, such as the RMB than can ease your transaction, instead of asking their banks or financial institutions to make it dollars, or euros.

The ICBC delegation conducting the workshops is made up of William Chan (Public Institutions, Institutions Department), Li Feiran (Trade Finance Department), Yang Xin (Fund Transfer and Clearing Operation Management Department) and Fan Xu (ICBC Head Office, International Banking Department).

Among the various topics that will be shared are The Development of RMB Internationalisation, Why should you use RMB, How Seychelles trade with RMB, and an Overview RMB Clearing Operation.