Ethiopia in talks with China to convert Dollar loans to yuan

Ethiopia has initiated discussions with China to convert some of the $5.38 billion it owes Beijing into yuan-denominated loans, aligning with countries such as Kenya that are opting for the yuan for more affordable financing options. This move supports China’s goal of globalizing its currency. Eyob Tekalign, Ethiopia’s finance state minister, revealed, ‘We have already started talking about the restructuring of some of the loans we have at the moment.’ This deliberation highlights Ethiopia’s interest in exploring alternatives to reduce its existing debt burden. The country’s decision mirrors the approach adopted by other nations seeking financial relief through yuan-based arrangements.