Five countries eye Kenya-style switch from dollar to yuan loans
Chinese yuan notes. A growing number of countries are exploring whether converting Chinese loans from dollars into yuan could reduce debt-servicing costs.
Kenya’s move to convert Chinese loans from dollars into yuan to cut borrowing costs is drawing interest from at least five other African and Asian nations, an AidData study found, in a sign debt-laden borrowers are exploring alternatives to expensive dollar-linked financing.
Ethiopia, Mozambique, Zambia, Pakistan and Indonesia were among countries that could seek Kenya-style changes to the terms of Chinese loans, according to the report, as Beijing also pushes broader use of the renminbi in cross-border lending.
