Reduce reliance on the US dollar, "Africa accelerates shift to RMB and local currency settlements"

"U.S. tariff threats have prompted Africa to shift from the dollar to the RMB," reported Bloomberg in the United States on February 26. Due to the U.S. unpredictable tariff policies that have already affected African businesses, Africa is accelerating its efforts to reduce dependence on the dollar, exploring trade settlements using the RMB and local currencies.

Jeremy Awori, CEO of the Pan-African Economic Bank Group (Ecobank), said that although the level of trade between Africa and the U.S. is relatively low, President Trump's tariff policies have still had an impact on Africa. The upcoming expiration of the U.S. Africa Growth and Opportunity Act also adds more uncertainties for African manufacturers and exporters.

The Africa Growth and Opportunity Act is a trade preference program by the U.S. for sub-Saharan African countries, covering 32 African countries and allowing thousands of eligible products to enter the U.S. duty-free. On February 3 this year, President Trump signed legislation extending the act's validity until December 31, 2026, with retroactive applicability until September 30, 2025.

Awori revealed that the U.S.'s unpredictable trade policies are prompting African companies to turn to the RMB and local currencies. He said, "We will see more options for direct RMB conversion into African currencies. We also need to consider trade in African currencies because if transactions can be conducted in local currencies, it can ease the pressure of demand for the dollar."

According to data from the U.S. government, bilateral trade between Africa and the U.S. reached approximately $83.4 billion in 2025, an increase of about 16% compared to the previous year. Economists at the Pan-African Economic Bank estimate that this figure is far less than the over $315 billion in trade between Africa and China.

Awori added that in response to external geopolitical uncertainties, strengthening intra-African trade is crucial for African countries. Countries within the region need to enhance their autonomy by boosting trade among themselves. He cited the example of Nigeria's newly built Dangote Refinery, which has a production capacity of 650,000 barrels per day, supplying gasoline, diesel, and aviation fuel to the country and other African markets.

Statistical data from the United Nations Conference on Trade and Development show that intra-African trade amounted to approximately $220 billion in 2024, accounting for 15% of the region's total trade volume.

Awori said, "We indeed hope to see more value-added activities in various fields such as mining, oil and gas, and agriculture, further driving growth in intra-African trade. However, we still have some issues to address in non-tariff barriers and bureaucratic procedures."

In recent years, due to the frequent use of financial "weapons" by the U.S., more and more countries have begun to seek ways to reduce their reliance on the U.S. dollar, and the RMB is being used more in international trade.

According to the People's Bank of China's "Report on the Internationalization of the RMB (2025)" released last year, in 2024, the total amount of cross-border RMB payments handled by banks for clients reached 64.1 trillion yuan, an increase of 22.6% year-on-year; in the first half of 2025, the total amount of cross-border RMB payments handled by banks for clients reached 34.9 trillion yuan, an increase of 14.0% year-on-year. The RMB has become the second-largest trade financing currency globally; according to full-scale calculations, it is the third-largest payment currency globally.

The SWIFT monthly report and data statistics released by the Society for Worldwide Interbank Financial Telecommunication (SWIFT) on February 19 showed that in January 2026, in the global payment currency ranking based on amounts, the RMB accounted for 3.13%, ranking fifth in the global payment sector, moving up one position compared to December 2025.

Original article: toutiao.com/article/1858243664672968/

Statement: This article represents the views of the author alone.