A general view of a Standard Bank branch in Sandton. AFP/Emmanuel Croset
JOHANNESBURG - Standard Bank has become the first African lender cleared to transact in Chinese currency.
The bank will operate alongside the Commercial Bank of China as the Renminbi Clearing Bank of Africa.
The move builds on Standard Bank’s recent entry into China’s cross-border payment system.
It enables faster and more efficient trade settlements.
It also allows businesses to trade directly in Chinese Yuan or Renminbi.
That will cut reliance on the US dollar and reduce costs, delays and currency risk.
The clearing status also gives Standard Bank access to China’s onshore financial system.
It will strengthen its role in facilitating trade with Africa’s largest trading partner.
Analysts say it signals a broader shift toward closer financial integration between Africa and Asia.