China welcomes bilateral trade in Yuan

[Shahzaz ud din]

China welcomes bilateral trade in Yuan
Business
by Web Desk | Published on January 4, 2018 (Edited January 4, 2018)

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BEIJING – China has welcomed Pakistan’s move allowing the yuan to be used for imports, exports and financial transactions for bilateral trade and investment activities.

China’s Foreign Ministry Spokesperson Geng Shuang said on Thursday that bilateral monetary cooperation has been deepening since China and Pakistan signed a bilateral currency swap agreement in 2011.

“At present, various forms of trade and investment cooperation between China and Pakistan have developed in depth,” he added.

Pakistan’s central bank had stated on Tuesday that public and private sector enterprises may use the yuan for bilateral trade and investment.

Additionally, the State Bank of Pakistan is taking measures to ensure that imports, exports and financing transactions can be denominated in yuan (RMB) in both public and private sectors (both Chinese and Pakistani) and people are free to choose RMB for bilateral trade and investment activities.

Both public and private sector enterprises may use the yuan for bilateral trade and investment, the State Bank of Pakistan had said in a statement on Tuesday.

“As per current foreign exchange regulations, Chinese Yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan,” it said.

“In terms of regulations in Pakistan, CNY is at par with other international currencies such as USD, Euro and JPY,” it added.

“We encourage market players in both countries to use domestic currency settlement in bilateral trade and investment and welcome Pakistan’s initiatives,” replied Shuang when asked to comment on Pakistan’s move.

Beijing believes this will provide a good financial environment for bilateral economic, trade and investment cooperation and the construction of the China-Pakistan Economic Corridor, he added.

The $54 billion CPEC was launched in 2013 to link western China to the Indian Ocean via Pakistan and has been hailed as a “game changer” by Pakistani officials.

 

[shootingstar]

China has welcomed Pakistan’s move allowing the yuan to be used for imports, exports and financial transactions for bilateral trade and investment activities.

Does this mean Pakistan would no longer use US dollars for any import-export and only use Chinese Yuan?

 

[Rollno21]

Does this mean Pakistan would no longer use US dollars for any import-export and only use Chinese Yuan?

With China yes,the real deal would have been if Pakistan would have been allowed to trade in pakistani rupee in China or to allow to payback the loan in rupees

 

[Dark-Destroyer]

Does this mean Pakistan would no longer use US dollars for any import-export and only use Chinese Yuan?

It means between Pakistan and China they will use the Chinese yuan

 

[my2cents]

It means between Pakistan and China they will use the Chinese yuan

Since the trade is heavily one sided, how are settlement going to be done just using yuan. Exports to China shrank to $1.62 billion in 2016-17 from $2.69bn in 2013-14. Imports from China, in contrast, grew to $10.53bn in 2016-17 from $4.73bn in 2012-13, an increase of 123pc. So, my understanding is $1.62 will be bilaterally settled using yuan and the rest in dollars.

 

[Maxpane]

what pakistan will get from it?

 

[BABA AGHORI]

what pakistan will get from it?

Trump ka ek aur tweet.. plus few thousands $ saved in forex conversion.

 

[Imran Khan]

Trump ka ek aur tweet.. plus few thousands $ saved in forex conversion.

while his red *** burning in his tweet

 

[Sine Nomine]

what pakistan will get from it?

Ghdaar Insan,yeh sawal karney ke himmat kesey hoi tumhey

 

[Ahmet Pasha]

I have the same question.
Can anyone explain layman terms??

what pakistan will get from it?

 

[Samlee]

I have the same question.
Can anyone explain layman terms??

Paying In Yuan Means That Pressure On Your Dollar Reserves Will Ease Significantly.That Is Going To Help Pakistan's Forex Reserves.

Does this mean Pakistan would no longer use US dollars for any import-export and only use Chinese Yuan?

Not Immediately But Over Some Time The Import Export Will Shift To Yuan.Personally This Is Just A Formality As Pakistan Already Has A Currency Swap With China

 

[Maxpane]

Ghdaar Insan,yeh sawal karney ke himmat kesey hoi tumhey

sorry sir i just ask a question

 

[Samlee]

sorry sir i just ask a question

Read My Post Above Your Question Stands Answered

 

[Thanatos]

Since the trade is heavily one sided, how are settlement going to be done just using yuan. Exports to China shrank to $1.62 billion in 2016-17 from $2.69bn in 2013-14. Imports from China, in contrast, grew to $10.53bn in 2016-17 from $4.73bn in 2012-13, an increase of 123pc. So, my understanding is $1.62 will be bilaterally settled using yuan and the rest in dollars.

I hope you do understand that major reason for this trade imbalance is importing massive amount of machinery and other components used in power plants and industry being setup in Pak under CPEC.

Does this mean Pakistan would no longer use US dollars for any import-export and only use Chinese Yuan?

Only time will tell.

 

[Sugarcane]

what pakistan will get from it?

Attaraction for Chinese businessmen an investors.