Chinese Premier Li Qiang’s official visit to Egypt has resulted in a major financial cooperation between the two countries, with the signing of a series of agreements aimed at promoting the use of the Chinese yuan in cross-border trade and enhancing digital payment. The visit, which included high-level meetings with Egyptian President Abdel Fattah el-Sisi and Prime Minister Mostafa Madbouly, marks a significant shift in how China and Egypt plan to transact and invest moving forward.
One of the most notable outcomes of the visit was the agreement between the Central Bank of Egypt and the People’s Bank of China to expand the use of the yuan for bilateral trade settlements. This includes a memorandum of understanding signed between Suez Canal Bank, China-Africa TEDA Investment, and the Cross-Border Interbank Payment System (CIPS), which will enable seamless yuan-based transactions within the TEDA Suez Economic and Trade Cooperation Zone. This move is expected to significantly ease business operations for Chinese firms and local Egyptian partners, further embedding Egypt in China’s Belt and Road financial ecosystem.
Additionally, Chinese digital payment giant UnionPay struck new partnerships in Egypt to scale its fintech footprint. Agreements with Egypt Banks Company and PayMob aim to expand the acceptance of UnionPay cards across retail outlets and e-commerce platforms, positioning Egypt as a rising hub for Chinese financial technology in North Africa. These deals signal a deliberate push to digitize trade and everyday transactions through integrated Chinese fintech systems.
Talks also covered potential issuance of yuan-denominated “panda bonds” by Egyptian entities in Chinese financial markets, as well as discussions on a possible yuan–Egyptian pound currency swap mechanism. These tools would enable Egypt to access Chinese capital more efficiently while reducing exposure to the US dollar in trade and debt settlements.
The timing of these agreements is especially critical, as Egypt continues to navigate foreign exchange constraints and seeks to diversify its economic partnerships. From China’s perspective, Egypt represents a strategic financial gateway to Africa and the Arab world, offering a stable partner for piloting yuan internationalization through real-time trade and financial systems.
