Ecobank agrees to join Chinese payment platform

The move follows increasing demand from African businesses to settle deals using China’s currency. Ecobank agreed a partnership with China’s payment system to enable transaction settlements in the yuan currency. The Togo-based bank, which operates in 34 African countries — more than any other continental lender — will sign an agreement this month to join the China Interbank Payments System (CIPS). South Africa’s Standard Bank and the African Export Import Bank have taken the same step in the last year. The move follows increasing demand from businesses on the continent to transact and settle deals using China’s currency. An 18% rise in China-Africa trade last year — marked by a surge in the continent’s imports of Chinese solar power equipment — underscored the growing commercial relationship between both parties, highlighting the appeal of financial systems that make transactions easier to complete. China this year removed tariffs for imports from all African countries except Eswatini. Its move to increase bank integrations with its payments system furthers a push led by the BRICS bloc against the US dollar’s dominance in international trade.