The Bank of Angola now allows banks to hold yuan in foreign-currency reserves, reflecting China’s growing influence in Africa.
Angola’s central bank has expanded its list of approved reserve currencies to include China’s yuan, alongside the US dollar, euro, and South African rand. The directive, issued on July 2, was published on the bank’s website this week, marking a symbolic step in diversifying away from dollar dominance.
The move aligns with broader trends in emerging markets, where countries are gradually reducing reliance on the dollar amid geopolitical and economic shifts. While the immediate impact on global FX flows is expected to be minimal, it underscores China’s push to internationalize the yuan, particularly in Africa, where trade and financing ties with Beijing are deepening.
For oil markets, Angola’s status as a key crude supplier to China could eventually support more yuan-denominated energy settlements. This follows similar efforts by other oil exporters to reduce dollar transaction costs and mitigate sanctions exposure.