Prime Minister Charlot Salwai and his delegation have initiated discussions with Governor General Pan Gongsheng of the People’s Bank of China to establish a Port Vila branch as a clearing bank for Chinese currency. This move aims to reduce the high costs of imported goods from China, often priced in U.S. dollars.
Hilaire Bule, Government Public Relations Officer, highlighted the challenges posed by the strong and fluctuating U.S. dollar, which inflates prices in Vanuatu. “Trading directly with China using Chinese currency could alleviate these costs,” Bule explained.
Governor General Pan expressed interest in the proposal, affirming that officials from the People’s Bank of China in Australia and New Zealand would explore the initiative. The People’s Bank of China currently operates branches in various regional countries, facilitating easier trade and currency transactions.
“This initiative could potentially stabilise costs and benefit Vanuatu’s economy,” Prime Minister Salwai stressed.
