On July 10, 2025, the Governor of the Central Bank of Egypt, Hassan Abdalla, hosted his Chinese counterpart, Pan Gongsheng of the People’s Bank of China, in Cairo for a high-level meeting aimed at expanding financial and trade cooperation between the two nations. Key discussions centered on bilateral agreements to facilitate trade using local currencies—the Egyptian pound and the Chinese yuan—and to enable the settlement of commercial payments without relying on the U.S. dollar. The move aligns with broader global efforts, especially by Beijing, to internationalize the yuan and reduce dependency on Western financial systems. A major highlight was Egypt’s forthcoming issuance of Panda bonds—Chinese yuan-denominated bonds to be sold on the Chinese bond market. This strategic financing step will allow Egypt to raise capital directly from Chinese investors, providing an alternative funding stream amid ongoing economic reforms and foreign currency constraints.
Both central bank governors also emphasized the importance of increasing the presence of Chinese banks in Egypt and encouraging Egyptian financial institutions to establish operations in China. These efforts aim to support mutual investments and reinforce financial stability and economic growth across both nations. Three strategic agreements were signed during the visit, including one that links Egypt’s Suez Canal Bank with the China-Africa TEDA Investment Company and CIPS—the Cross-Border Interbank Payment System—China’s alternative to SWIFT. The goal is to promote wider use of the yuan within the China-Egypt Economic and Trade Cooperation Zone located near the Suez Canal in Ain Sokhna. The zone is a flagship project of China’s Belt and Road Initiative and positions Egypt as a key logistics and industrial hub connecting Africa, the Middle East, and Europe.
In addition, Chinese digital payment giant UnionPay signed an agreement with Egypt’s Electronic Banking Services (EBC) to upgrade Egypt’s digital financial infrastructure. The deal ensures that UnionPay cards are accepted at both physical and online retail locations across the country. UnionPay also partnered with Egyptian fintech company Paymob to expand electronic payment access for merchants and e-commerce businesses. These developments reflect deepening financial integration and strategic alignment between Cairo and Beijing, with Egypt playing a growing role in China’s global economic ambitions.
