China Railway Construction Engineering Closes Its First Foreign Yuan Settlement in Algeria
Chen Juan | Liu Jing
DATE:  Aug 28 2018
/ SOURCE:  Yicai
China Railway Construction Engineering Closes Its First Foreign Yuan Settlement in Algeria China Railway Construction Engineering Closes Its First Foreign Yuan Settlement in Algeria

(Yicai Global) Aug. 28 -- China Railway Construction Engineering Group has accomplished its first international yuan settlement, which was also the first such transaction in Algeria.

Jijel Oil Expelling Factory, CRCEG's Algerian partner, disbursed its first payment in China's currency via the Algerian Branch of France's Societe Generale, ChinaNews.Com reported today.

Settlement in redbacks lowers the risks of loss in exchange rate caused by the double conversion into and out of dollars, CRCEG said, adding it will continue to expand the range of both yuan payment and settlement to internationalize the Chinese medium of exchange.

Bank of Algeria has started to promote the realization of yuan settlement in the course of bilateral trade between China and the North African nation since October 2015. However, this has never been done before because of devaluation of the local currency, the dinar, and lukewarm efforts from the national government.

CRCEG has signed several huge contracts in Algeria. It has already undertaken 24 projects worth around CNY7 billion (USD1 billion) since entering the country's construction market in 2006. These include Abdelhamid Kermali Stadium in the Baraki suburb of the capital of Algiers, which is Algeria's largest modern multi-functional sports center and has a seating capacity of 40,000.

Editor: Ben Armour

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Keywords:   China Railway Construction Engineering Group,Yuan Settlement,Algeria