China will extend nearly $10bn in credit to Latin American and Caribbean nations, President Xi Jinping announced Tuesday, with all funds denominated in yuan.

Xi pledged at the China-CELAC Forum in Beijing, a platform aimed at strengthening cooperation between China and the bloc of Latin American and Caribbean states.

The yuan-based credit lines are expected to support development projects, with analysts suggesting they are part of China’s broader strategy to reduce reliance on the US dollar.

“China is doing a lot more yuan-based deals like this, particularly credit swap agreements that make it easier for the borrowing country to transact in RMB rather than USD,” said Eric Orlander of the China-Global South Project.

The new commitment follows a $20bn credit offer made during the forum’s first meeting in 2015, which aimed to boost Chinese investment in regional infrastructure.

Xi also announced that China will introduce visa-free travel for citizens of five unnamed Latin American and Caribbean countries and plans to expand the policy further.

Trade between China and Latin America exceeded $500bn for the first time in 2024 — a steep rise from just $12bn in 2000.

Reaffirming China’s support for the region’s role in global affairs, Xi said it was a “great pleasure” to welcome both “old and new” friends to Beijing. The forum remains a key pillar of China’s engagement under the Belt and Road Initiative.