Zimbabwe accepts the yuan as its international currency

China's currency has certainly been in the spotlight last year, but the milestone was an event in late 2015 that garnered a lot of attention. On December 22, 2015, Zimbabwe became the first country to accept the Chinese yuan as its main international currency.
Zimbabwe's Finance Ministry announced the decision after the Chinese government agreed to write off Zimbabwe's $ 40 million in debt. While critics of Beijing have described the move as neo-colonial, Zimbabwe officials insist that the adoption of the yuan is driven by the natural evolution of the country's foreign policy strategy. China is playing a leading role in modernizing Zimbabwe's agriculture and mining sector, thus serving the broader interests of the population.

Zimbabwe's isolation from Western markets due to its extreme economic instability and Robert Mugabe's authoritarian system has made China its main international ally in recent years. Chinese President Xi Jinping, during his December visit to Harare, reaffirmed China's commitment to investing in Zimbabwe by announcing multi-billion dollar energy and infrastructure proposals.

China's close ties with Zimbabwe can be attributed to historical legacy, regulatory convergence, and practical economic benefits. Zimbabwe is arguably China's strongest ally in Africa in recent years. Beijing has also spearheaded Zimbabwe's recovery efforts to strengthen leverage over other countries, setting a precedent for strengthening the alliance's potential in sub-Saharan Africa.

Zimbabwe's extensive integration with the Chinese economy is potentially replicable in other African countries. China has been cautious in investing in Zimbabwe, ensuring a balanced cooperative relationship and distancing itself from accusations of neo-imperialism. The introduction of the yuan is the culmination of more than three decades of consistent cooperation between the two countries. If these ties ensure the recovery of Zimbabwe's economy, they could be a harbinger of expanding Chinese influence in this region of Africa.