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S. Africa to back RMB as int'l currency in BRICS Summit: media
Last Updated(Beijing Time):2012-03-25 20:53

The South African government will endorse the Chinese Renminbi as the new global currency during the incoming BRICS Summit in India, local media reported on Sunday.

The South African government will take some steps in the BRICS Summit to challenge the U.S. dollars' supremacy in the world financial structure, especially in the trade and investment in the emerging markets, the South African Sunday newspaper City Press reported.

Using the Chinese currency instead of the U.S. dollars will benefit African businesses to do business with other BRICS memberships by lowering dealing cost in Africa, namely lowering the trade barriers, the South Africa's largest bank Standard Bank said in its research report.

The South African government announced on Thursday President Jacob Zuma will attend the fourth BRICS Summit, which will be held on March 28 and 29 in the Indian capital of New Delhi under the theme "BRICS Partnership for Global Stability, Security and Prosperity".

The BRICS consists of Brazil, Russia, India, China and South Africa, and its memberships are among the world's emerging economic entities.

Standard Bank said the use of Renminbi will strengthen the South Africa's position in the BRICS group because South Africa will provide a big gate for the BRICS group to get access to the huge market in the whole African continent.

According to Standard Bank's research report, at least 100 billion U.S. dollars in the bilateral trade between China and Africa will be settled in Renminbi by 2015, more than total bilateral trade amount in 2010.

It will also be more convenient for the Chinese businesses to explore trade opportunities in Africa than anywhere else due to most currencies in the African continent are weak and somewhat localized, said the Standard Bank.

The use of Renminbi in the emerging economies will not only challenge the U.S. dollar, but also the entire international financial institutions, including the World Bank and the International Monetary Fund, the Standard Bank said.

A Brazilian institution was cited as saying that China's currency should be promoted as a preferred global currency in the international trade as the country is expected to rise further financially.

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