Reported about 10 hours ago
China is utilizing its status as the world's largest creditor to promote the yuan by offering foreign debtors the chance to refinance loans in yuan instead of dollars, capitalizing on lower domestic interest rates. This week, Ethiopia joined other nations like Kenya in seeking yuan-denominated loans, sparking a trend among sovereigns to benefit from cheaper Chinese financing. Although this strategy leads to potential financial losses for China due to lower interest rates, the long-term goal is to increase the yuan's role in international commerce and diminish U.S. financial dominance amid ongoing economic tensions.
Source: YAHOO