Pakistan China decided to ditch dollar in bilateral trade.

[SuvarnaTeja]

I guess there will be swap agreements between countries.

https://www.reuters.com/article/us-...idUSKCN1N00GD?feedType=RSS&feedName=worldNews

Swap agreements work well when there is equal two way trade. They won't work when trade is one sided.

 

[xyxmt]

I guess there will be swap agreements between countries.

https://www.reuters.com/article/us-...idUSKCN1N00GD?feedType=RSS&feedName=worldNews

swap Chinese currency with what

 

[SuvarnaTeja]

that is because the assumption was that Pakistan will be able to earn Chinese currency by exports, they under estimated the power of laziness and hud harami of Pakistani public...they can only be fixed by an honest politician.

Unless China is giving preference to imports from Pakistan as a policy decision, this will not help much on ground.

 

[Abdussamad]

No the goverment in power allowed the drone strikes and the military is under the goverment so go ask zadari and nawaz

Not in Pakistan mate. In Pakistan the military does as it pleases and does not answer to civilians.

 

[SuvarnaTeja]

swap Chinese currency with what

May be Pakistani assets - Ports, Farm lands, Mines etc.

 

[AZADPAKISTAN2009]

Dollar has no value it's printed from printer ......in auto mode country is under 20 Trillion Dollar debt


Old Way of Doing Trade

• Pakistan buys from China , more Dollar goes out from Pakistani Economy
• China buys from Pakistan, Less Dollar comes back into Pakistani Economy
• Middle Man makes a Nice cut with Dollar Trade, who used to hide dollar

New Way of Doing Trade:

• Pakistan buys from China in Yuan/Rupee, Pakistan maintains a dollar reserve at same level
• China buys from Pakistan in Yuan/Rupee , China not forced to buy Dollar currency
• The same amount transfers between two nations
• No middle man game (money saved)

 

[Abdussamad]

that is because the assumption was that Pakistan will be able to earn Chinese currency by exports, they under estimated the power of laziness and hud harami of Pakistani public...they can only be fixed by an honest politician.

Wait are you implying that IK has the power to change how people do business in Pakistan? Not going to happen. This currency swap will be used by the central bank to cheaply borrow money from China as it has in the past. That's all it is good for. Trade will continue in the US dollar.

 

[A.P. Richelieu]

this will create both demand for the PKR and will also reduce dependence on the usd. This is pretty big blow to the usd. Very good move.

Yes, China and Pakistan will trade in Yuan, and when the Pakistan rupee is devalued,
the Chinese will still be paid back in Yuan.
Excellent deal for China, since they can remove the risk of currency changes.

 

[xyxmt]

Unless China is giving preference to imports from Pakistan as a policy decision, this will not help much on ground.

well then Chinese has to work twice, first come to Pakistan and make things then export it to China...because do whateva the f'k you want, Pakistanis are not working and that is the truth

 

[GumNaam]

As you can see, it is easier and cheaper for Pakistan to purchase the Yuan than it is the u.s. dollar... most of our hitech products come from China and Chinese companies deal in their own Yuan ANYWAYS... so its a win-win for both. Chinese currency is one step closer to becoming a global central currency while we get purchase the same consumer goods without having to worry about how many usds do we have left.

 

[Goenitz]

We can export China at best edible stuff. . Like rice, wheat etc... or some terrif income in yuan using routes etc.. I hope we don't sell resources like saindak or valuable land for yuan.
Best way is to facilitate chinese business in Pakistan to earn yuan . Give them land on lease.

 

[BHarwana]

Sir can you enlighten us about the six billion dollars bailout package for Pakistan. Or was it just a rumour.

It was a previously known package which China decided to provide when China offered help in time when PTI just won elections. Now there are chances of further addition to the package.

https://twitter.com/x/status/1058618141620748288

 

[Indus Pakistan]

it would almost impossible to get huge amounts of Yuan either through Pakistanis expat remittances or Pakistani exports to China.

Ehh? You miss something. We could let millions of Chinese tourists visit Karachi, enjoy some Indian Biriani, watch some Bollywood movies and have real fun enjoying the local culture. That would earn billions in Yuan.

 

[Dark-Destroyer]

Not in Pakistan mate. In Pakistan the military does as it pleases and does not answer to civilians.

So why was there an elected goverment just to loot and plunder the state into its current position well in that case a job well done by the civilian administration

 

[xyxmt]

Wait are you implying that IK has the power to change how people do business in Pakistan? Not going to happen. This currency swap will be used by the central bank to cheaply borrow money from China as it has in the past. That's all it is good for. Trade will continue in the US dollar.

Is that the common thinking now in Pakistan?

ok here is one problem, Borrow mean return, so if you used the borrowed money to buy goods from China then how will you pay it back, or if you keep all the borrowed Chinese Currency just to return it in Chinese Currency with only a cheap borrowing cost....you are still short on cheap borrowing cost of that cheaply borrowed money which should also be paid in the Chinese currency, or will Chinese accept USD for that small portion (commonly called interest)
These are the small details that PTI govt need to take Public in confidence and I hope Imran will address it in his next talk to Mere PAkistanio