Chinese currency yuan was recently included in the coveted Special Drawing Rights (SDR) basket of IMF, making it a global currency.

The inclusion is likely to increase the currency's use in international transactions, especially in the African region where China has strong presence.

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In Kenya, CFC Stanbic Bank pioneered the concept of direct currency exchange between the Kenya Shilling and Renminbi. The direct exchange facilitated economic and trade ties as it helped in reducing currency transaction losses.

The bank's CEO, Philip Odera, said the growing trade between Africa and China has made it important for traders to maintain a strong stock of yuan.

In an interview with Xinhua, Kenyan economist Dr. Gerishon Ikiara said yuan was not used much as hard currency for settling the trade deals. However, this will likely change after the inclusion of yuan in the SDR basket.

Ikiara also noted that yuan will eventually emerge as a key hard currency for financial institutions both in developed and developing countries.

CFC Stanbic also introduced yuan transactions in South Sudan, a move which has been welcomed by Simon Akuei Deng, Secretary General of South Sudan Chamber of Commerce, Industry and Agriculture (SSCCIA). Deng has called the development as a "mutually beneficial arrangement."

Meanwhile, South Sudan has reported surge in the demand for Chinese yuan as trade between South Sudan and China increases. The latter contributes almost 60 percent of imported products, including construction materials and electrical goods.

The inclusion of yuan in the SDR basket was made on Oct. 1.  The currency has been accorded third largest weight at 10.92 percent, behind US dollar and Euro. The inclusion is significant as it signals global recognition of the robustness of the Chinese economy. 

TagsIMF, Special Drawing Rights Basket, CFC Stanbic Bank, Kenya, South Sudan