Zambia and China Agree to Increase Use of Local Currency in Trade

(Bloomberg) — Zambia and China agreed to encourage greater use of their currencies in trade and investment after a meeting in Beijing between their presidents, but both parties were mostly mum on Zambia’s pending $6.3 billion debt deal.

The accord between Chinese President Xi Jinping and Zambia’s President Hakainde Hichilema will reduce currency exchange costs and exchange rate risks, the two leaders said Friday in a joint statement. The measure may also curb reliance on the U.S. dollar, in which copper is priced. The metal accounts for about 70% of Zambia’s export earnings, and China generates about half of global demand.