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Thursday, 13 September 2018

Is China calling in the currency-swap favor?

**#3 Is China calling in the currency-swap favor? The Chinese government is in talks with Egypt to base a number of key transactions between the two countries on the CNY. These include some of the high-profile loans for key projects signed during President Abdel Fattah El Sisi’s trip to Beijing earlier this month, Chinese ambassador to Cairo Song Aiguo said. The funding would be under the framework of the USD 2.65 bn currency swap with China, which Egypt signed in 2016 as part of the USD 5.7 bn funding required to secure a USD 12 bn extended fund facility from the IMF, he added. China is also currently discussing the possibility of allowing to ships to pay Suez Canal transit fees in CNY while allowing tourists visiting Egypt to use the Chinese currency. CBE Governor Tarek Amer had said last month that Egypt and China plan to renew the currency swap agreement.

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