Zambia, China Agree to Increase Use of Local Currency in Trade
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Bank of China billboard, outside the arrivals area at Kenneth Kaunda International Airport in Lusaka, Zambia.
Photographer: Waldo Swiegers/BloombergThis article is for subscribers only.
Zambia and China agreed to encourage greater use of their own currencies in trade and investment, after a meeting in Beijing between Presidents Xi Jinping and Hakainde Hichilema.
The measure will reduce currency exchange costs and exchange rate risks, the two leaders said in a joint statement on Friday. It may also curb reliance on the US dollar, in which copper is priced. The metal accounts for about 70% of Zambia’s export earnings and China accounts for about half of global demand.