Vanuatu’s Prime Minister, Charlot Salwai, has urged the Bank of China to establish a branch in the Pacific Island nation, as per a statement from his office released on Friday. During a visit to China, Salwai conveyed this request to bank officials, aiming for the potential establishment of a Port Vila branch that could serve as a clearing bank for yuan.
In a recent development, the United States and Australia jointly hosted a meeting in Brisbane to tackle the issue of improving financial access in the region, where China is also actively seeking influence. The Vanuatu government highlighted that setting up a yuan clearing facility could lead to reduced prices of Chinese goods, currently being traded in U.S. dollars.
Bank of China, already present in New Zealand, Australia, and Papua New Guinea, has been exploring new avenues for growth. Recently, the bank signed a memorandum of understanding with Nauru to delve into potential banking solutions, showcasing its commitment to expanding its regional footprint.
Prime Minister Salwai’s diplomatic engagements have been noteworthy, from his visit to Shanghai to his upcoming participation in a Pacific Island leaders meeting in Japan. Notably, during his visit to China, he also visited tech giant Huawei in Shenzhen, underlining the diverse engagements in his itinerary.