China and Egypt have expanded their currency swap agreement to 30 billion yuan to support settlements in national currencies, investment and industrial projects. The arrangement was supported by Chinese President Xi Jinping and Egyptian President Abdel Fattah el-Sisi during the Chinese leader’s state visit to Cairo, the South China Morning Post reports.
Three-year swap
The People’s Bank of China and the Central Bank of Egypt renewed the currency swap in June, extending it for three years and increasing the limit from 18 billion to 30 billion yuan. The mechanism allows the central banks to provide each other with their own currencies within the agreed amount. This enables Egyptian banks and companies to obtain yuan for transactions with China without first purchasing US dollars.
In a joint statement, the sides welcomed the renewal and expansion of the agreement and called on financial institutions to support industrial and development investments, infrastructure, green and digital projects. Egypt already has experience raising funds on the Chinese market: in 2023, the country issued Africa’s first sovereign sustainable panda bonds worth 3.5 billion yuan.
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Yuan and industrial projects
Experts note that wider use of the yuan could reduce Egypt’s need for dollars for part of its trade settlements, but it will not solve the overall problem of foreign currency shortages. John Calabrese, a senior fellow at the Middle East Institute, believes that the mention of the yuan signals a desire to deepen financial ties, reduce dependence on the dollar and promote the international use of the renminbi.
Chinese customs statistics show that in 2025 Egypt imported nearly $20 billion worth of goods from China, while exporting about $819 million to China. The leaders also outlined their intention to develop Egypt as a regional industrial and logistics hub linked to Asia, Africa and Europe. The identified areas include electric vehicles, shipbuilding, renewable energy, water desalination, data centers, semiconductors and cybersecurity.
The China-Egypt TEDA Trade and Economic Cooperation Zone in Suez had attracted more than 200 companies and over $4.7 billion in investment by mid-2026. Abdel Fattah el-Sisi announced the third phase of its expansion this week; new factories and projects may create additional opportunities for using yuan and Egyptian pounds in investments, equipment procurement and settlements with suppliers.
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