The North-Western Chamber of Commerce has welcomed Government’s decision to accept the Chinese currency the Yuan alongside the United States dollar in selected financial transactions, describing the move as progressive and economically prudent.
Speaking in an interview with the media today, North-Western Chamber of Commerce President Amos Kapi said the acceptance of the Yuan poses no risk to the local economy, noting that the currency was already widely recognised and used internationally.
“As a Chamber, we see no problem with the acceptance of the Yuan. It is a widely accepted currency, just like other notable global currencies such as the United States Dollar,” Mr Kapi said.
He explained that the move would help streamline financial transactions between Zambia and China particularly in settling bilateral obligations saying that funds would be readily available in the required currency when debts fall due.
Mr Kapi noted that accepting the Yuan would reduce the need for frequent currency conversions which often result in unnecessary costs for both Government and the private sector.
He said conversion costs represent direct fiscal inefficiencies as they constitute expenditure that generates no economic value while simultaneously reducing resources that could otherwise be directed towards debt servicing or other critical government programmes.
Mr Kapi added that minimising currency conversion would improve financial efficiency, enhance liquidity management and promote smoother trade relations between Zambia and its international partners.
He further observed that the move could encourage increased trade and investment between Zambia and China as it simplifies payment processes and reduces transaction risks associated with exchange rate fluctuations.
Mr Kapi has urged stakeholders to view the development as a practical financial strategy rather than a threat to the local currency adding that strong regulatory oversight would ensure economic stability.
He reaffirmed the Chamber’s commitment to supporting policies that promote efficiency, trade facilitation and sustainable economic growth in the country.
Yesterday, Government announced a change in the way mining companies will pay taxes, allowing firms to remit part of their tax obligations in Chinese currency, the Yuan, alongside the US dollar.
