Monetary cooperation between China and Egypt is witnessing significant development, with both sides agreeing on the need for further cooperation to address the challenges arising from successive global crises and the resulting imbalance in global supply chains. Egypt also seeks to attract Chinese companies to the Egyptian market in various sectors, particularly petrochemicals and electronics. Monetary cooperation between Egypt and China represents an important step in strengthening economic relations between the two countries. It is expected to increase the volume of trade between Egypt and China, contribute to attracting more Chinese investments to Egypt, and support sustainable development through innovative financing tools, thus strengthening the comprehensive strategic partnership between the two countries. Joint agreements were signed to promote the use of local currencies in financial and trade settlements, facilitate direct investments, and enhance cooperation in the field of central bank digital currencies. This cooperation also aims to support financial innovations and exchange of expertise between the two countries. The most prominent aspects of monetary cooperation between Egypt and China are as follows: The use of local currencies: Encouraging the use of the Egyptian pound and the Chinese yuan in settling trade and investment transactions between the two countries. Facilitating direct investment: This means enhancing financial cooperation to support direct investments between Egypt and China. Enhancing cooperation in the field of central bank digital currencies and exchanging expertise and information in the field of financial technology and innovation. In addition, encouraging joint Egyptian-Chinese cooperation within the framework of Egypt’s membership in the Forum on China-Africa Cooperation: This includes focusing on implementing priority projects and supporting sustainable development through innovative financing tools.
Cooperation between the Central Banks of Egypt and China has increased recently, increasing the volume of bilateral trade and agreement to increase the volume of trade between them using local national currencies, away from the dominance of the dollar in trade and investment transactions between the two parties. Hassan Abdullah, Governor of the Central Bank of Egypt, signed a “Memorandum of Understanding” (MoU) with “Pan Gongsheng,” Governor of the People’s Bank of China, on Friday, July 11, 2025, at the Egyptian Cabinet headquarters. The MoU aims to enhance cooperation and coordination between China and Egypt in various areas of mutual interest. The MoU is an important step toward strengthening banking and financial relations between Egypt and China.
The MoU aims to encourage the use of local and national currencies in settling financial and trade transactions, as well as facilitating direct investments between the two sides, thus contributing to enhancing economic integration between them. It also includes enhancing cooperation in the field of digital currencies for central banks, in addition to supporting financial innovations using modern technology. The use of local currencies in trade transactions between Egypt and China will contribute to reducing dependence on foreign currencies, stabilizing trade flows, and paving the way for deeper institutional coordination between the two countries.
Major projects between China and Egypt, within the framework of China’s Belt and Road Initiative and Egypt’s Vision 2030, include the Central Business District in the New Administrative Capital and the China-Egypt Economic and Trade Cooperation Zone (TEDA) in the western axis of the Suez Canal, an industrial cooperation model comprising 185 companies. To develop joint projects between Egypt and China, there are several financing and financial initiatives to boost trade and investment between the two countries. The most prominent of these initiatives are exploring payment settlements in local currency, exploring the issuance of Egyptian bonds in the Chinese market, exploring linking Egyptian-Chinese payment systems, encouraging the presence of Chinese banks in Egypt and vice versa, and signing an agreement to use the Chinese yuan in the Suez Canal Special Economic Zone, which is heavily populated by Chinese projects. It’s expected that (UnionPay) is expanding its operations in Egypt to expand the acceptance of its cards. In addition, Egypt has signed a partnership agreement with the Chinese company Paymob to expand electronic acceptance services for merchants.
In recent years, thanks to the strategic guidance of Egypt and China, relations between them have witnessed significant development, becoming a model of solidarity, cooperation, and mutual benefit between China and Arab, African, and developing countries. By aligning China’s Belt and Road Initiative with Egypt’s Vision 2030, the two countries have drawn up a promising action plan and achieved remarkable results in various sectors, particularly the financial and innovation sectors. China also provides concessional loans to Egypt to finance development projects, and Egypt participates in the Asian Development Bank, to which China is the largest shareholder. Joint investment has recently witnessed a remarkable boom, especially after Cairo moved to encourage foreign investors with recent economic reform measures. As a result, most foreign investors who expanded their investments in Egypt were from China, a result of the strength of economic cooperation between the two countries.
The Egyptian side is currently interested in strengthening and supporting mechanisms for expanding trade exchange between small enterprises in both countries and supplying the Chinese market with the goods and services it needs from small enterprises in Egypt. This allows these enterprises the opportunity to enter one of the largest and most important global markets, gain exposure to it, and enhance their expertise in developing new products or increasing and expanding their production.
Regarding innovation cooperation between China and Egypt, we find that cooperation in the field of innovation and technology transfer is key to sustainable development. By strengthening Egyptian partnerships between research institutions and Chinese companies and simplifying procedures related to the transfer and localization of Chinese technology in Egypt, Egypt can stimulate innovation. There are more than 1,054 Chinese research institutions cooperating with Egypt in the field of higher education and scientific research, and there are more than 9,301 scientific publications between Egyptian and Chinese researchers. This reflects the close ties between academic institutions in the two countries and enhances the scientific, technological, and innovation capabilities of both parties. Egypt and China specifically announced on June 25, 2023, the completion of assembly and testing of the MisrSat-2 satellite in cooperation with China. This project represents a new exemplary achievement in Sino-Egyptian cooperation within the framework of implementing China’s Belt and Road Initiative. The Chinese side proposed focusing on training a team of Egyptian scientists during the implementation of the Egypt Sat-2 project and providing the Egyptian side with rich experience on the project, particularly in the ground testing phase of the satellites and long-range remote sensing control after the launch of Sat-2.
Based on this, we understand Egypt’s efforts to consolidate monetary, banking, and innovation cooperation with China across all fields and sectors. This is in line with the slogan of achieving gains for all, without one party monopolizing the other.