Mozambican companies can start paying their Chinese suppliers through their banks in China following the introduction of a new CNH clearing service launched by the Société Générale Moçambique, the bank said in a statement sent to macauhub.
The CNH, or offshore yuan, is the international code for China’s currency (CNY) that can be traded outside the country, mainly in Hong Kong, which tends to be worth slightly more than the currency in circulation in China as its value changes based on demand, whilst the domestic value of the currency is based on national exchange rate policy.
Launched in August, the new service makes it possible to make payments “quickly and safely at a low cost” and to carry out transactions all over the world, with the support of the bank’s headquarters, in Paris.
The statement also said that the service had been created due to growth of trade between Mozambique and China and based on statements from China’s President, Xi Jinping, when in December 2015 at the China-Africa Summit in Johannesburg he announced financing for Africa of US$60 billion.
Société Générale Moçambique also said it had recently hired a Chinese business manager who would focus exclusively on management of customers in China, as well helping them develop their business in Mozambique.