what do Pakistan get out by keep using dollar? Right, American just ended support.
Pakistan nearly trades its economic sovereignty in currency swap arrangement with China
- Thread starter khakhi_chaddi
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what do Pakistan get out by keep using dollar? Right, American just ended support.
American Pakistani
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I was like, let me report this troll for fake title until I saw it in the article itself. These bhartis seems like burning in Pakistani obsession and phobia.
Not a good sign.
Chhatrapati
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Why don't you throw away your 3 trillion dollars in reserves first?
Just one question though, how do you swap your currency? Are you giving the Chinese pkr in exchange for RMB?
TaiShang
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Pakistan helps boost the internationalization of Chinese currency
By Wang Yue
2018-01-05
Pakistan's central bank has approved usage of the Chinese yuan as a settlement currency for trade between the two countries. An expert said that move will help enhance China-Pakistan bilateral trade relationship and speed up the internationalization of Chinese currency yuan.
Pakistan will allow Chinese currency to be used for imports, exports and financing transactions for bilateral trade and investment activities. According to a statement issued by State Bank of Pakistan (SBP), a regulatory framework including the opening of letters of credit, clearing of transactions and financing facility in the yuan has already been put in place.
VCG Photo
This issue has been discussed for many months, according to Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies. “And actually, we have already discussed with many experts and think tanks from Pakistan, about the problems we are facing, the future of the yuan’s usage in Pakistan, the advantages for both sides and the risky problems in the process.”
Bilateral trade between China and Pakistan is growing fast. Official data showed that the bilateral trade reached 11.5 billion US dollars in the first seven months of 2017. That was an increase of 6.4 percent year on year.
Besides, China signed new project contracts worth 4.84 billion US dollars with Pakistan last year from January through July, finalizing 5.2 billion US dollars in contracted projects.
Now, the significant approval may mean the replacement of the US dollar for transactions in China-Pakistan Economic Corridor projects. And the support will benefit both countries, in Liu’s view.
“For the moment, Pakistan has difficulty to fulfill all these payments because of the shortage of US dollars. Pakistan needs additional and alternative to support the country’s payment capability. And RMB is the best solution for Pakistan. As for China, Chinese companies and investors can directly use RMB [in Pakistan], without exchange rate or currency risk,” Liu told CGTN.
VCG Photo
Moreover, Liu noted that this progress is meaningful for the internalization of the yuan, as it provided a new idea to boost Chinese currency going abroad.
“The yuan’s internalization is a long way to go. I prefer to see, for the internalization of RMB, we should do firstly more regionalization of the yuan,” Liu explained. “If all the regions can accept the yuan as the settlement, payment and clearing currency, I think there is no question for the whole world to accept China.”
But Liu also admitted the internalization of the yuan is not an easy job. The main point, from his perspective, is how to be well-accepted by developed countries.
“The main point is that RMB should be well-accepted by developed countries. If they accept RMB, the currency will be stronger,” Liu explained. “But of course, on the first stage, we should do our best to do in the developing countries.”
https://news.cgtn.com/news/346b444f35637a6333566d54/share_p.html
By Wang Yue
2018-01-05
Pakistan's central bank has approved usage of the Chinese yuan as a settlement currency for trade between the two countries. An expert said that move will help enhance China-Pakistan bilateral trade relationship and speed up the internationalization of Chinese currency yuan.
Pakistan will allow Chinese currency to be used for imports, exports and financing transactions for bilateral trade and investment activities. According to a statement issued by State Bank of Pakistan (SBP), a regulatory framework including the opening of letters of credit, clearing of transactions and financing facility in the yuan has already been put in place.
VCG Photo
This issue has been discussed for many months, according to Liu Zhiqin, a senior fellow at the Chongyang Institute for Financial Studies. “And actually, we have already discussed with many experts and think tanks from Pakistan, about the problems we are facing, the future of the yuan’s usage in Pakistan, the advantages for both sides and the risky problems in the process.”
Bilateral trade between China and Pakistan is growing fast. Official data showed that the bilateral trade reached 11.5 billion US dollars in the first seven months of 2017. That was an increase of 6.4 percent year on year.
Besides, China signed new project contracts worth 4.84 billion US dollars with Pakistan last year from January through July, finalizing 5.2 billion US dollars in contracted projects.
Now, the significant approval may mean the replacement of the US dollar for transactions in China-Pakistan Economic Corridor projects. And the support will benefit both countries, in Liu’s view.
“For the moment, Pakistan has difficulty to fulfill all these payments because of the shortage of US dollars. Pakistan needs additional and alternative to support the country’s payment capability. And RMB is the best solution for Pakistan. As for China, Chinese companies and investors can directly use RMB [in Pakistan], without exchange rate or currency risk,” Liu told CGTN.
VCG Photo
Moreover, Liu noted that this progress is meaningful for the internalization of the yuan, as it provided a new idea to boost Chinese currency going abroad.
“The yuan’s internalization is a long way to go. I prefer to see, for the internalization of RMB, we should do firstly more regionalization of the yuan,” Liu explained. “If all the regions can accept the yuan as the settlement, payment and clearing currency, I think there is no question for the whole world to accept China.”
But Liu also admitted the internalization of the yuan is not an easy job. The main point, from his perspective, is how to be well-accepted by developed countries.
“The main point is that RMB should be well-accepted by developed countries. If they accept RMB, the currency will be stronger,” Liu explained. “But of course, on the first stage, we should do our best to do in the developing countries.”
https://news.cgtn.com/news/346b444f35637a6333566d54/share_p.html
why should china throw away 3 trillion dollar reserve when it serves chinese interest perfectly well? Pakistan switched to Yuan exactly because using dollar is not serving their interest anymore, any questions?
Trango Towers
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You focus on getting toilet for your family. Let us worry about Pakistan
Chinese investment will come in the form of Yuan, which will be used to make trade payments from Pakistan saving USD reserves....this will work perfectly for short term....long term after CPEC in full swing both countries will have enough trade to use Rambini.
Chhatrapati
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Renminbi
I could have also googled it but i dont care much about little things as long as people understand
Chhatrapati
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I don't have to google, it sounds like it is spelled. Renminbi.
Just then I find your spelling funny. That's why I tried to correct
Lil Mathew
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I will focus anything I needed to... Who the he.l are you to advise me??
You first stop worry about my toilet...
Trango Towers
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Hammad Arshad Qureshi
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It seems like Indians care about Pakistan more than Pakistanis themselves these days . Specially when the news is against Pakistan Army or China-Pakistan partnership. Which shows that we are moving in right direction.
If Indians started to support something in Pakistan then automatically the conclusion should be that something is up with these people. And if Indians are hurt on something on such scale that they have to write editorials and articles in top news papers every now and then, claiming Pakistan is getting in trouble etc. Immediate conclusion should be we are doing right thing
If Indians started to support something in Pakistan then automatically the conclusion should be that something is up with these people. And if Indians are hurt on something on such scale that they have to write editorials and articles in top news papers every now and then, claiming Pakistan is getting in trouble etc. Immediate conclusion should be we are doing right thing
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