Angola Approves Chinese Yuan for Foreign Currency Reserves as Ties with China Deepen
Angola’s central bank has authorised commercial banks to use the Chinese yuan as part of their foreign currency reserve requirements, marking a further step in strengthening financial and economic relations between Angola and China.
The decision allows banks operating in Angola to hold yuan, alongside other approved currencies, to meet mandatory foreign exchange reserve obligations.
The move is expected to support liquidity management, improve currency diversification and facilitate growing trade flows between the two countries.
According to a directive issued by the National Bank of Angola, the Chinese yuan has been added to the list of recognised reserve currencies.
The US dollar, euro and South African rand remain among the other approved currencies that commercial banks can use to satisfy reserve requirements.
Move Supports Currency Diversification Strategy
The inclusion of the yuan reflects Angola’s broader efforts to reduce dependence on traditional reserve currencies, particularly the US dollar, while strengthening financial links with major trading partners.
The decision follows increased cooperation between China and African financial institutions, including steps to expand the use of the renminbi in cross-border transactions.
Greater access to yuan-based financial services could help simplify trade settlements and reduce currency risks for businesses engaged in Angola-China commerce.
China Remains Angola’s Largest Trading Partner
China continues to play a central role in Angola’s economy, particularly through its demand for crude oil exports and its involvement in infrastructure development projects.
Chinese companies and financial institutions have supported major investments in areas such as transport, energy, construction and industrial development, making China one of Angola’s most important economic partners.
Bilateral trade between Angola and China reached approximately $20.83 billion in 2025, reflecting continued growth in commercial ties between the two nations.
Strengthening Financial Cooperation
The approval of the yuan as a reserve currency highlights the expanding relationship between Luanda and Beijing as both countries seek greater financial integration.
For Angola, increased use of alternative currencies could improve access to international markets, support trade efficiency and provide greater flexibility in managing foreign exchange reserves.
As economic cooperation with China continues to expand, the yuan is expected to play a growing role in Angola’s financial system and international trade activities.
