Pakistan China decided to ditch dollar in bilateral trade.

[Foxtrot Delta]

Is Pakistan going to print Yuan?

No china pays pakistan in yuan and pakistan pays them in rupees.

Currencies get swapped until balance deficit comes then they decide the next step.

 

[Hakikat ve Hikmet]

Great Historic decision

China-Pakistan trade Pakistan gets 100% benefit from purchases and exports no middle man stealing processing fees

For some folks anything being "historic" is damn painful, thanks to the folks like Mehmut, Aybek, EbdAli etc...

No china pays pakistan in yuan and pakistan pays them in rupees.

Currencies get swapped until balance deficit comes then they decide the next step.

For Pak, it's like opting one international currency over another provided which one comes with a better benefits package!!!! For the USA, it's the loss of the Empire....

 

[Mage]

It is very difficult to export anything to China. Almost all countries in the world run trade deficits with China.

South Korea, Japan, Taiwan have trade surplus with China. Also China imports more than 1.5 trillion USD worth goods per year.

That being said, I don't see any South Asian country having Trade surplus with China. But if somehow Pakistan can get connected to China with CPEC and other policies, it can help Pakistan's export well. All depends how they play their cards. Even if they do it right it and industrialize very quickly, it will still take at least 20 years to close the trade gap. By 20 years I'd expect China to be more consumer oriented economy than it is now. Which is fine...South Asian economies must have to be prepared to capitalize it.

 

[shah_123]

Pakistan and China have decided to throw dollar out of bilateral trade and use local currencies.

even before this announcement, you could do bilateral trade in local currencies, i don't know why this much noise.

 

[BHarwana]

even before this announcement, you could do bilateral trade in local currencies, i don't know why this much noise.

Lol you want to make it a small issue and a small development be my guest but in my life observing news for past few year all I heard was talks on ditching dollar in bilateral trade and no implementation of the local currency trade. Now finally it is happening.

 

[shah_123]

Lol you want to make it a small issue and a small development be my guest but in my life observing news for past few year all I heard was talks on ditching dollar in bilateral trade and no implementation of the local currency trade. Now finally it is happening.

Just ring in your bank and talk in foreign trade section, ask them if you could do trading, say with china, in Rmb.

 

[BHarwana]

Just ring in your bank and talk in foreign trade section, ask them if you could do trading, say with china, in Rmb.

Yes I can trade with China in Rmb but my bank will buy dollars send them to China and then Chinese bank will take those dollars and give the other person Rmb.

 

[shah_123]

Yes I can trade with China in Rmb but my bank will buy dollars send them to China and then Chinese bank will take those dollars and give the other person Rmb.

Nopes, even today you can do direct trade in Rmb without involving dollars.
the problem is the overall mechanism like custom valuations is in us dollars, i hope the govt will work on this fast.

 

[GHALIB]

Pakistan and China have decided to throw dollar out of bilateral trade and use local currencies.

https://twitter.com/x/status/1059058501052436480

https://twitter.com/x/status/1059107873089826817

Negative trade. Import is 90 percent.

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

Still not clear .

 

[RoadRunner401]

Not all trades between Pakistan and China will go straight to yuan and rupee, but a gradual shift. Last year, nine percent of payments for supplies from Russia to China were made in rubles; Russian companies paid 15 percent of Chinese imports in the renminbi.

Direct payments in the Rupee-yuan pair does not imply the participation of American, British, or EU banks. This significantly reduces the control of the West from ongoing transactions, and makes the trade turnover between Pakistan and China independent. Moreover, such payments can be made without SWIFT through the China International Payments System (CIPS).

 

[BATMAN]

No china pays pakistan in yuan and pakistan pays them in rupees.

Currencies get swapped until balance deficit comes then they decide the next step.

Are you part of plan? or this is your personal thinking?

My advise, PTI should always consult professionals, before making any claims, plans and promises.

I'm not financial guy but i know, all world has huge trade imbalance in favor of China. I trust Pakistan is not any different. So let's talk further, how is Pakistan going to get the needed Yuan to fund the imbalance in favor of China, which might be in billions of Yuan.

 

[Foxtrot Delta]

Are you part of plan? or this is your personal thinking?

My advise, PTI should always consult professionals, before making any claims, plans and promises.

I'm not financial guy but i know, all world has huge trade imbalance in favor of China. I trust Pakistan is not any different. So let's talk further, how is Pakistan going to get the needed Yuan to fund the imbalance in favor of China, which might be in billions of Yuan.

i know this because. same stuff is happening between China and russia. Russia and india and Iran and pakistan. in each of these instances dollar is ditched for the above method i explained.

 

[BATMAN]

i know this because. same stuff is happening between China and russia. Russia and india and Iran and pakistan. in each of these instances dollar is ditched for the above method i explained.

Forget everyone else... from where Pakistan will get billions of Yuan to pay the imbalance trade in China's favor?

 

[Hakikat ve Hikmet]

Forget everyone else... from where Pakistan will get billions of Yuan to pay the imbalance trade in China's favor?

I am a novice in this field!!! But, there're historical precedence. For example, how some close US allies (e.g., SK, Taiwan, Singapore etc.) became economic heavy weights? Think about the Marshal Plan for the Western Europe after the devastating WW2!!!! Yuan initially will work like a booster in the missile/rocket etc. for the Pak economy!!! Once it gets out of the gravitational pull, it'll be able to glide by itself!!! You help your prospective allies to be self reliant, innovative etc., and then you reap the benefits!!!! First sow then reap....

This is what the aspiring Super Powers do! They have a story to tell! And, they have the intellectual, financial, military etc. resources to back it up! And, they want their allies to "borrow" a part of the story and become successful! Thus they enhance their influence in the global arena!! The US story is fading and the Chinese story is getting brighter, and the cycle continues....

 

[BATMAN]

I am a novice in this field!!! But, there're historical precedence. For example, how some close US allies (e.g., SK, Taiwan, Singapore etc.) became economic heavy weights? Think about the Marshal Plan for the Western Europe after the devastating WW2!!!! Yuan initially will work like a booster in the missile/rocket etc. for the Pak economy!!! Once it gets out of the gravitational pull, it'll be able to glide by itself!!! You help your prospective allies to be self reliant, innovative etc., and then you reap the benefits!!!! First sow then reap....

So basically we help Yuan to become an alternate currency of trade!
What's the gain in it for Pakistan?
from my PoV, if we keep our reserves in $ they don't loose value as fast as other currencies and are widely accepted.
At the end of the day, if we buy Yuan from $ reserves we gain and if we by $ from Yuan reserves we loose.