A topic i’m long overdue on blogging is China’s influence on South Africa and, in turn, on Knysna. My backlog is still far too big to get to it now but felt it important to pilfer important, latest developments from other websites to start you thinking (if you weren’t already).
It is significant that, in Zimbabwe, exporters and the public can now open accounts in yuans, Australian dollars, Indian rupees and Japanese yen. The yuan, the currency of China, is particularly interesting as it means further erosion of the dollar as the world currency. Furthermore, China is building a military airport, for itself, in the diamond-rich Marange fields of Zimbabwe which, in a way, makes China our new neighbour.
Business Day reported this week that, “Leaders of the five Brics (Brazil, Russia, India, China and South Africa) nations agreed on the structure of a $50bn development bank by granting China its headquarters and India its first rotating presidency. Brazil, Russia and South Africa were given posts or units in the new bank.
The leaders also formalised the creation of a $100bn currency exchange reserve, which member states can tap in case of balance of payment crises, according to a statement issued at a summit in Fortaleza, Brazil.
Both initiatives, which require legislative approval, are designed to provide an alternative to financing from the International Monetary Fund (IMF) and the World Bank, where Brics countries have been seeking more say.”
South Africa is also expected to set up a regional headquarters for BRICS within 2 years, seemingly having chosen which side its bread is buttered.
The battle for Africa is very much on the go.
What do you think?