MEFMI countries governors meet in Dar to discuss China’s yuan

20Jun 2016
Victor Karega
The Guardian
MEFMI countries governors meet in Dar to discuss China’s yuan

GOVERNORS of central banks from Macroeconomic and Financial Management Institutes of Eastern and Southern African (MEFMI) region are today meeting in Dar es Salaam to

address critical issues that impact on the economies of the area including the recent Chinese yuan entry into the global currency basket.

In a statement, Bank of Tanzania (BoT) said the annual forum will mainly focus on developments of macroeconomic fundamentals in the region.

It said the theme of the one day forum is “Implications of the IMF Adoption of Chinese Yuan as part of the Special Drawing Rights basket of currencies.”

China’s efforts to make the yuan an international currency at par with the US dollar are to receive a fillip with the IMF widely expected to add it to a special basket of global currencies.

Analysts say the shareholders in the Washington-based IMF will vote on Monday to include the yuan, also known as the renminbi, as the fifth member of its special drawing rights currency basket alongside the dollar, the Japanese yen, UK sterling pound and the European euro.

China has been lobbying for the IMF to add the yuan to its basket of reserve currencies, which it uses to lend to sovereign borrowers. A vote to include the currency in the SDR basket would mark a significant milestone for Beijing in global financial matters, according to experts.

According to BoT, the event will be attended by up to 40 officials comprising 14 central bank Governors and Deputy Governors from the MEFMI region, technical experts from Investec Asset Management and the Bank for International Settlements (BIS) in Basel, Switzerland.

EFMI is a co-operative venture among ten southern African countries (Angola, Botswana, Lesotho, Malawi, Namibia, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe) and has many foreign partners, including the IMF, World Bank, and the Swedish government.

The governors’ forum is one of the executive fora series on MEFMI’s annual calendar of events meant to assist in developing and sustaining a crop of more informed policy makers in the region.

It is MEFMI’s hope that both the presentations and the discussions will provide the unique opportunity for sharing views on the inclusion of the Chinese yuan into the basket of reserve currencies of the IMF and World Bank.

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