Mozambique\u2019s move <\/a>would follow a broader shift across Africa, where governments are turning to China\u2019s currency as Beijing pushes to expand its global use.
\n <\/p>\n
\n Still, the yuan remains a small part of global reserves. IMF data shows it accounts for less than 2%, compared with 56.8% for the US dollar, underlining the limits of its global reach despite gradual gains.
\n <\/p>\n
\n Mozambique is also in talks with China over a debt-for-development swap, which would redirect part of its obligations into domestic investment projects.
\n <\/p>\n
\n \u201cThe government intends to extend the scope of this window\u2026 to convert part of the debt into investments directed towards strategic projects,\u201d Bloomberg quoted the finance ministry as saying.
\n <\/p>\n
\n Officials say priority areas include agriculture, energy, infrastructure, health, education and climate resilience. One of the first projects under consideration is expected to focus on children.
\n <\/p>\n
\n If agreed, the deal would place Mozambique among a small number of African countries testing such arrangements with China. Egypt signed a memorandum of understanding on a similar framework last year.
\n <\/p>\n
\n Despite holding some of Africa\u2019s largest natural gas reserves, Mozambique has yet to benefit fully from the sector. Projects led by TotalEnergies and ExxonMobil, worth about $50 billion, have faced years of delays, with exports now expected only toward the end of the decade.
\n <\/p>\n
\n Meanwhile, debt pressures are building. Mozambique\u2019s $900 million Eurobond begins repayments in 2028, with annual payments of $225 million.
\n <\/p>\n
\n The government is also seeking a new IMF program after abandoning a previous one last year, highlighting the urgency of securing relief before major repayments begin.
\n <\/p>\n","protected":false},"excerpt":{"rendered":"
The proposal is part of ongoing restructuring talks with Beijing, the country\u2019s biggest bilateral creditor.
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