Pakistan, China agree to Trade in Chinese Yuan

[Viet]

So from one foreign currency to another. How does this help pakistan ? Explanation please.

The Chinese want to replace USD dominance by CNY dominance. So little to nothing is going to change for Pakistan if switching to the Yuan. It’s more or less a cosmestic operation. Instead of calculating Rupee to Dollar then to Yuan, you in the future will calculate Rupee to Yuan using a virtual metric. That metric will be determined by the Bank of China.

 

[Daniel808]

` Maybe we should come up with an Asian currency like the Euro?Let's call it Asio?

Maybe not limited to asia only.
But across 60 Members of BRI (Belt & Road Initiative) in the future, cover not only Eurasia but also Africa, and South America.

In the first phase of BRI is to Build Infrastructure, Industrial Complex, and Human Resource supported by China.
So in the near future, China expect all BRI members have "same" level and Strong foundation of Economic.

After that, they will move to Second phase of BRI to build a Connected Community with Shared Destiny.
(One Foundation, One Currency for members, Free Visa across Continent, and so on)

Using the Yuan for little trades between China and Pakistan just bring little effect. To impress Donald Trump, communist leader Xi should convince the top 5 trading partners of China to accept the Yuan: Japan, Korea, Australia, Germany and Vietnam.

Rome is not build by a Single night, dude.
But the step is on Right Direction now

 

[TaiShang]

` Maybe we should come up with an Asian currency like the Euro?Let's call it Asio?

That would be a radical step. Before that, however, a complete customs union is required, as @long_ say, which is still a long shot even for a East Asian sub-regionalism such as Northeast and Southeast Asia. For an Asian-wide currency, we will need to wait for some serious systemic changes.

Using the Yuan for little trades between China and Pakistan just bring little effect. To impress Donald Trump, communist leader Xi should convince the top 5 trading partners of China to accept the Yuan: Japan, Korea, Australia, Germany and Vietnam.

Communist VCP is probably the closest for that. Than comes Korea and Japan. But, for that, we maybe have to wait for another 1997 type crisis. Hopefully, it does not happen, but, sometimes, it takes a big slap to teach a lesson.

 

[Adam WANG SHANGHAI MEGA]

This is a way to save Pakistan's foreign exchange. Although the cost to change USD may be saved but will not do too much help, the most fundamental problem is that the Pakistani government must secure more foreign exchange (whether in US dollars, Euros, Canadian dollars, or Renminbi).
No matter how much you save, the most fundamental problem in solving problems is to make more money.

So from one foreign currency to another. How does this help pakistan ? Explanation please.

China can pay RMB to Pakistani products and Pakistan can do it as well.
Before,PAK should buy USD and China should buy USD as well to pay each other,i admit this does not contribute too much to Pak forei reserves,a little help,but not too much!
the most fundamental problem is that the Pakistani government must earn more foreign exchange (whether in US dollars, Euros, Canadian dollars, or Renminbi).
No matter how much you save, the most fundamental problem in solving problems is to make more money.

Pakistan must ensure that more products are exported to the outside world, and the Pakistani government should ensure that these products are sustainable and allow customers to continue to place orders for Pakistani companies.

Using the Yuan for little trades between China and Pakistan just bring little effect. To impress Donald Trump, communist leader Xi should convince the top 5 trading partners of China to accept the Yuan: Japan, Korea, Australia, Germany and Vietnam.

No need to,nobody convince you to speak english,and yes you did anyway.
And what is communist leader Xi means?
You VN is not communist country?!

 

[Place Of Space]

So from one foreign currency to another. How does this help pakistan ? Explanation please.

1. you can save some trading cost. You use USD to trade with Chinese company, US banks will take a service commision.
2. To decrease the risk of foreign currency price fluctuation. They say it's better not to put all eggs into one basket.
3. You can buy almost all products from China by Yuan. The money is not worthless paper.
Some more...?

 

[thunderkaka]

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