Mauritius Emerges as a Regional RMB Clearing Hub Linking 3 Countries

Mauritius has reached a key milestone in its goal to become a major financial hub connecting Africa, China, and India. On the 12th June, the Bank of China (Mauritius) Limited officially launched as a clearing bank for the Chinese yuan (RMB). This move gives Mauritian banks and businesses a new option to settle cross-border transactions in Chinese currency.

The launch took place at the Inter-Continental Hotel in Balaclava, with Rama Sithanen, Governor of the Bank of Mauritius (BoM), attending.

He described it as a strategic step amid changing global trade flows and growing diversification of payment methods.

The availability of RMB as a settlement option helps local banks manage currency risks better, especially during ongoing market turbulence.

As the Chinese yuan increases its role internationally—used increasingly for trade, finance, and as a reserve asset—Mauritius’s infrastructure now supports direct payments with China.

This reduces reliance on the US dollar and offers a strategic hedge against currency fluctuations, lowering costs for businesses involved in cross-border trade.

The timing is notable. In 2024, China remained Africa’s top trading partner for the 16th straight year, with bilateral trade reaching a record USD 295 billion.

In the first five months of 2025, trade grew by 12.4%. Having a local RMB clearing facility positions Mauritius as a key link in these growing economic ties, simplifying direct payments and strengthening commercial relations with China.

Haijiao, President of Bank of China Limited, emphasized that this development reflects a bilateral consensus and aims to boost economic exchanges. Moreover, he stated:

“Bank of China is committed to delivering better services to facilitate trade and financial transactions between Mauritius, China, and regional markets.”

On a broader scale, the BoM is exploring integrating RMB into its local automated payment system for real-time settlement in Chinese currency.

This would improve payment efficiency and reduce transaction times for businesses.

The initiative also fits into wider African financial integration efforts. As the settlement bank for the Regional Payment and Settlement System (REPSS) of the Common Market for Eastern and Southern Africa, the BoM is considering adding RMB as a settlement currency.

Additionally, through its leadership of the African Central Banks’ Association (AACB), Mauritius is working to connect regional payment systems with the Pan-African Payment and Settlement System (PAPSS) led by the African Union and Afreximbank.

Furthermore, a bilateral currency swap agreement between the BoM and China’s Bank of China provides Mauritius with RMB liquidity reserves in times of market stress, allowing direct access without using third currencies. This boosts the island’s financial independence.

This move is not a rejection of traditional partners but a strategic diversification. In a multipolar world, offering multiple national currency settlement options enhances economic sovereignty and regional integration.

For Mauritius, it signals a step towards a more balanced, inclusive, and resilient economic future aligned with the realities of the Global South.

Source: l’Express