Can China’s Bilateral Currency Swap Agreements Counter the IMF’s Hegemony in Africa?

Part 2: What Lessons for the Economic Sovereignty of Africa and Tunisia ?

Abstract:

In the first part of this article, we analyzed the monetary tool that is BCS currency swap agreements and attempted to critically assess their potential for financial diversification in African countries. We began by explaining how BCSs work, their advantages and limitations, and the conditions for their success. The study focuses on Chinese BCS in order to draw lessons and formulate policy recommendations for African policymakers, with the aim of strengthening the continent’s economic resilience and reducing its dependence on the IMF.

This second part will focus on a more in-depth analysis of the BCS concluded between China and certain African countries, namely Nigeria, Egypt, Morocco, and South Africa. Through the study of these concrete
examples of currency swaps, we will seek to identify strategic perspectives for the effective deployment of these mechanisms for African countries, with particular attention to the case of Tunisia. Finally, an analysis of the history of Tunisia’s trade and diplomatic relations with China, and of its structural strengths and weaknesses, allows us to propose a range of economic reforms that can both make Tunisia attractive for such a partnership and ensure that a future CBS agreement strengthens its sovereignty rather than creating new dependencies.