The friendly associations and mutually positive cooperation between the People’s Republic of China and the Republic of Mauritius have progressively deepened. The two countries retained a sound momentum of high-level exchanges and enhanced their mutual political trust. With respect to this and other factors, an RMB (Renminbi) clearing center is expected to be launched soon in Mauritius, this RMB clearing center will promote trade transactions between Mauritius and China, and also strengthen Africa-China economic ties.
To accomplish this, the two countries will sign a Currency Exchange Agreement based on the volume involved. Then a pilot project can be commenced to execute the Cross-Border Interbank Payment System, similarly known as the China International Payments System.
The Major Opportunities That Will Be Unlocked By This Center
Besides the practical economic and trade cooperation continual progress,
- The chairman of the Economic Council for Africa Europe Asia (CECOAFREA) – an association bringing together businessmen and facilitating trade, said the center will enable import and export invoices to be paid using the currencies of the two countries directly.
- Besides boosting Mauritius-China business transactions, the center will also make a beneficial impact on economic ties between Africa and China.
- Mauritius is placing itself as the International Financial Center in the African region, and with the RMB Settlement Center launched, it will be another step toward strengthening and diversifying the financial services given, by facilitating cross-border transfers which will become even faster and cheaper.
- Presently, if you import from China, the invoices are commonly denominated in USD and not in RMB. Likewise, if you export to China from Mauritius, you invoice in either USD or EUR, and not in Mauritian Rupees (MUR). But with the RMB Settlement Center coming into system, this cross-border transaction can be done without the involvement of an intermediate currency.
- It’s also said, they are considering incorporating fintech and cryptocurrency on this platform in the future, which will make trading even easier.
Being well positioned for the role of intermediary between Africa and China, Mauritius is now acknowledged as one of the few global financial centers that are compliant with all the Financial Action Task Force’s 40 recommendations.
This Center emphasizes the importance of China‘s place in multinational trade. And this trend will continue growing as China intends to facilitate the internationalization of its currency, the Renminbi.
Moving on, this center will enhance the China-Mauritius cooperation and will further strengthen the position of Mauritius as a gateway of Asian trade and investment flows into Africa.
To enter the China or Mauritius market, either through investment or company incorporation, you have to understand the steps involved.
Contact your Damalion expert now to get started.
