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As various African currencies continue to fall against the U.S. dollar, some experts say that the internationalization of the RMB will have a positive impact on the African economy, lowering the cost of trade and currency risk, explained the chief economist of South Africa Standard Bank.

"Africa is a major importing country of Chinese goods. RMB internationalization could be used as a shortcut to lower the import costs and promote the growth of international trade. China has made significant investments and built important infrastructures in many African countries such as Kenya. These promote the local industrialization process and manufacturing development," said the chief economist of South Africa Standard Bank.

He also said that the internationalization of the RMB is a pragmatic initiative as well as being of important symbolic significance. African countries can increase the competitiveness of their own products while still being able to fall back on imported products and services from China. Internationalization of the RMB can help to simplify trade procedures and also plays an indispensable role in protecting China's African investments and promoting Sino-African cooperation.

"Although some African countries are facing the adverse effects of the decline in bulk commodity prices, the African economy still has a great investment opportunity in the long term. The RMB's internationalization process has great potential and a bright future on the African continent," said him.

This article was edited and translated from 《经济学家：人民币在非洲国际化进程潜力巨大》. Source: economic information daily