The National Bank of Ethiopia (NBE) is exploring closer financial cooperation with the People’s Bank of China (PBOC), including the potential use of the renminbi (RMB) in trade, currency swap arrangements, and participation in China’s cross-border payment system.
The discussions took place in Beijing on April 2 between NBE Governor Eyob Tekalign(PhD) and PBOC Governor Pan Gongsheng, according to a statement from the Ethiopian central bank.
Talks focused on integrating the RMB into bilateral trade—a move that could significantly alter how Ethiopia manages its foreign currency requirements. Officials explored establishing bilateral currency swap lines and trade financing facilities, which would allow Ethiopia to access yuan liquidity and settle imports from China without relying on the US dollar.
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The NBE also indicated it is considering increasing its RMB holdings, citing foreign currency earnings from sectors such as Ethiopian Airlines as a primary source for building reserves. Additionally, the two sides discussed integration with China’s Cross-Border Interbank Payment System (CIPS) and the expanded use of China UnionPay for transactions.
The talks included exchanges on financial technologies, such as central bank digital currencies (CBDCs), with China offering technical expertise as Ethiopia evaluates its financial infrastructure. These discussions occur as Ethiopia continues its debt restructuring under the G20 Common Framework.
Yet, no formal agreements were reported to be signed following the conclusion of the talks.
