The governor of the Central Bank of Egypt, Hassan Abdalla, welcomed his Chinese counterpart, Pan Gongsheng, the governor of the People’s Bank of China, on Thursday, July 10.
Key topics discussed included the establishment of agreements to facilitate trade in local currencies and the settlement of bilateral commercial payments in Egyptian pounds and Chinese yuan.
The discussions also covered Egypt’s upcoming issuance of Panda bonds in the Chinese financial market, as well as opportunities for better integration between Egyptian and Chinese payment systems.
Panda bonds are loans taken out by non-Chinese entities in the Chinese bond market.
Their uniqueness lies in being denominated in Chinese currency, the yuan, and targeted at Chinese investors or those with access to the mainland Chinese financial market.
For a country like Egypt, issuing Panda bonds means borrowing money in China by directly appealing to local investors, with repayment in yuan.
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