What's new

Pak-China currency deal to cut dependence on dollar

Dubious

RETIRED MOD
Jul 22, 2012
37,760
80
72,167
Country
Pakistan
Location
Pakistan
Pak-China currency deal to cut dependence on dollar


ISLAMABAD - The business community on Tuesday welcomed extension in the currency swap agreement between Pakistan and China terming it beneficial for the local economy facing multiple challenges.

The rupee-yuan swap amount has been doubled from 10 billion yuan to 20 billion yuan which will reduce the dependence of Pakistan on US dollar at a time when forex reserves and rupee are under pressure, an official of FPCCI said.

The deal was signed five years ago but it didn’t work but now the situation has changed, said Malik Sohail, chairman Coordination FPCCI. He said, “Now China is our biggest trading partner, bilateral trade is growing, CPEC has become a reality, therefore, doubling the swap size to 351 billion Pakistani rupees is a good move.”

Malik Sohail said that Pakistan continues to distance itself from the US and getting closer to China while the bilateral trade could jump to 13 billion dollars in which Pakistan would be importing items worth 11 billion dollars. Now Pakistan would be able to finance imports from China in Yuan which will also help stabilise rupee, he said, adding that further extension in the deal should not be delayed.

He said that Chinese companies working on CPEC and other projects would be able to send back profits in Chinese currency which will benefit Pakistan’s economy. The tensions between US and China and the new moves of American President has forced many countries to reduce dependence on the dollar and conduct international trade in local currencies.


https://nation.com.pk/06-Jun-2018/pak-china-currency-deal-to-cut-dependence-on-dollar
 

A.A. Khan

FULL MEMBER
Nov 17, 2016
1,271
4
1,719
Country
Pakistan
Location
Pakistan
Already decided on this issue in the last JCC meet that Pakistan would be using Yuan. Recently a Pakistani auto manufacturer paid Chinese in Yuan only for car parts. There are around 30 countries that are using Yuan currency for biltaeral trade with China so Pakistan not doing anything unusual.
 

AZADPAKISTAN2009

ELITE MEMBER
Sep 8, 2009
33,504
65
35,389
Country
Pakistan
Location
China
:pakistan::china:

US needs to pay it's 20 Trillion debt down before the dollar can be seen as viable trade option
and not manipulate international trade to continue to get favorable gains

If you have 230% percent more debt then us your currency should be weaker by same ratio

Debt of all developed countries is continuously pegged up by Dollar Manipulation year by year basis
 

Users Who Are Viewing This Thread (Total: 1, Members: 0, Guests: 1)


Top Bottom