Egypt, China renew currency swap, seek more local-currency trade

Egypt and China agreed to renew and expand their currency swap arrangement and encouraged wider use of local currencies in bilateral trade and investment, according to a joint statement issued on Wednesday.

The two countries welcomed existing financial cooperation, including China’s panda bond market and local-currency swap arrangements, and called on financial institutions in both countries to support industrial and development investments, as well as infrastructure and green and digital transformation projects.

They also agreed to promote wider settlement of trade and investment transactions in their respective currencies, as Egypt seeks to deepen financial ties with China and attract Chinese investment into manufacturing and infrastructure.

Egypt and China agreed to work towards a more balanced trade relationship and encouraged greater access for Egyptian products to the Chinese market in line with Chinese standards, the statement said.

Egypt welcomed China’s measures to exempt African countries from customs duties, while the two sides agreed to continue consultations on an “early harvest” trade agreement.

Egypt and China upgraded their relationship to a comprehensive strategic partnership in 2014 and have since expanded cooperation in infrastructure, manufacturing, energy and trade.

The statement was issued during Chinese President Xi Jinping’s state visit to Egypt, as the two countries mark 70 years of diplomatic relations.