NAIROBI, April 3 (Xinhua) -- The increased availability of the Chinese yuan in Kenya will boost the country's economic growth, the head of a bankers' association said on Wednesday.
Growing Kenya-China trade ties is creating local demand for the renminbi, said Habil Olaka, CEO of the Kenya Bankers Association.
"The increased availability of Chinese yuan in Kenya for settling transactions will reduce the cost of bilateral trade and will be positive for the economy," Olaka told Xinhua in Nairobi on the sidelines of the launch of the 2019 FinAccess Household Survey.
More Kenyan banks are adding the Chinese currency to their foreign reserves alongside the U.S. dollar, the euro and the British sterling pound.
"This is being driving by need to cash in on the expanding Sino-Kenya trade as well as cater for the growing Chinese business community," Olaka said.
Some bigger banks have established desks dedicated to serving Chinese clients, he said.
Previously, bilateral trade with China was conducted with foreign currencies such as the U.S. dollar, which resulted in higher cost due to the need to convert currencies between the Kenyan shilling, the dollar, and the Chinese yuan, Olaka said.
"The availability of Chinese yuan locally allows for transactions to be conducted directly without need to use intermediary currencies," he said.
