Angola’s central bank has expanded the list of eligible currencies for commercial bank reserve requirements to include the Chinese yuan.
The directive, issued by Banco Nacional de Angola on July 2, makes the yuan the fourth qualifying currency alongside the US dollar, the euro, and the South African rand.
In Latin America, Brazil has already elevated the yuan to its second-largest reserve currency and is preparing to issue its first panda bonds, raising up to 5 billion yuan.
The policy change formalizes the growing role of the yuan in Angola’s financial system, providing domestic banks with greater flexibility in managing liquidity and foreign exchange exposure.
By allowing reserves to be held in yuan, the central bank reduces reliance on traditional Western currencies and aligns its regulatory framework with the increasing volume of trade settled in Chinese currency.
This development mirrors a broader trend of de-dollarization and currency diversification across emerging markets.
In Latin America, Brazil has already elevated the yuan to its second-largest reserve currency and is preparing to issue its first panda bonds, raising up to 5 billion yuan.