The Zambian government said on Wednesday that it will begin engaging the Chinese government on the possibility of swapping the repayment of the southern African nation’s debt which is in U.S. dollars with the yuan.
Minister of Finance Margaret Mwanakatwe said the government will begin the engagement at the end of this month as part of efforts to ease pressure on the dwindling foreign reserves.
The Zambian minister told reporters that the government wanted to take advantage of the situation where China was the biggest importer of Zambian copper.
This mode of payment will mitigate Zambia’s burden to repay about 3 billion U.S. dollars owed to China, she added.
“Our intention is to swap the dollar into yuan so that we can try to somewhat mitigate exposure to the dollar,” she said. Enditem