NAIROBI (Xinhua) --
Kenyan banks was increasingly moving to trade the
Chinese Yuan against the Kenyan shilling in order to boost their
revenues, the Kenya Bankers Association (KBA) said on Friday.
The KBA CEO Habil
Olaka told Xinhua in Nairobi that the growing commercial links
between Kenya and China had led to huge demand for Chinese yuan
or Renminbi in Kenya.
“We have been seeing
more and more banks opening up Chinese yuan trading desks in
order to improve their customer experiences as well as enhance
revenues,” Olaka said.
He noted that
China’s rapid economic expansion over the past three decades had
seen the Chinese currency grow in prominence in global trade.
In 2016, the
International Monetary Fund (IMF) included the Chinese yuan into
its Special Drawing Rights Baskets alongside the U.S. dollar,
British Pound, Yen and Euro.
The CEO said that as
Sino-Kenyan ties grew, the renminbi was emerging as the
underlying currency for bilateral trade.
“This will eliminate
the need for traders to convert Kenya shillings into U.S. dollar
and then the Chinese Yuan,” he added.
According to KBA,
the greater convertibility of the Chinese currency will reduce
the cost of trade between the two nations as it will eliminate
the need to use intermediary currencies for trade.
Olaka noted more
banks were also rolling out products to cater for the growing
Chinese business community in Kenya.
investors are a lucrative niche market for the financial sector
due to their significant role in economy,” he added.