Imran Khan wins biggest trade favor from China

[war&peace]

Bad idea....none of our exports have an inelastic demand. We will trade trade our gold for Iphones, samsungs etc and no one will buy our goods. In the ensuing crisis, we might even end up eating our Prime Minister.

So right now, we are getting all those things free?

 

[PakSword]

Bad idea....none of our exports have an inelastic demand. We will trade trade our gold for Iphones, samsungs etc and no one will buy our goods. In the ensuing crisis, we might even end up eating our Prime Minister.
https://www.straightdope.com/column...ngry-dutch-kill-and-eat-their-prime-minister/

Attaching a currency to a commodity, and that too a precious commodity, is never a bad idea.. specially when you have 5th largest gold reserves (41.5 million oz) in the world..

 

[ziaulislam]

This is only pertinent to ease of doing business
Only...the real issue is still export/import disparity due to poor polices of trying to tax every export and every raw material AND NOT TAXING WASTE/stranded money

 

[HRK]

All CPEC loans and future trading will be done in Chinese currency not dollar. Plus, Pakistan will be the first country in the world which going to recognize Chinese Yuan as trading currency instead of Dollar or Euro .

Currency swap agreement is already in place since 2011 though it was for relatively small amount then revised last time in May-2018 (link) which is effective for three years, now for this news we have to see that Its a restructuring of previous agreement to further increase the limit of currency swap or a completely new agreement specifically addressing the bilateral trade which BTW seem difficult

 

[Indus Pakistan]

He should ask for Better then Vietnam and Asean, after all they call us "Iron brothers" not veitnav.. lol

To be fair the Vietnames got a good deal because they offer a good deal. High literacy, stable law/order, well organized and no Mullahs fighting to save Islam.

 

[HRK]

1 - Fix Pakistani Rupee value to gold. Meaning.. Any country having Pakistani Rupees will have a guarantee to get gold

do we have this much gold ....???

 

[Imran Khan]

Great news

 

[valkyr_96]

So right now, we are getting all those things free?

We pay those with dollars which we earn from our exports. If our currency is backed by gold, the countries which export oil/goods will gladly accept rupee and then trade it in gold (gold leaves Pakistan). At the same time, our exports will suffer....why would anyone pay for commodities like rice, cotton etc. in gold when they can buy the same from other countries?. This is not a radical concept nor it is done under some sort of conspiracy. In fact even, financial crises happened even when the countries had gold and silver coins please read up on Spain's 16th century financial crisis which was brought about by looting silver from Latin America consequently lead to fall in the value of silver. You can watch Nial Ferguson's Ascent of Money and read The Alchemists: Three Central Bankers and a World on Fire. Since it very much an education on its own, you can't expect to learn and even communicate anything worthwhile in threads. Just remember China is the biggest lender to the US. If they had to affect the dollar they could easily dump the Treasuries. This has happened before (albeit on a smaller scale) but Europe and GCC have been quick to help out.

Attaching a currency to a commodity, and that too a precious commodity, is never a bad idea.. specially when you have 5th largest gold reserves (41.5 million oz) in the world..

There is no proof because we have not yet seen the pudding( forget about even tasting it). The caretaker Balochi government gave them away for 2% royalty and allowing the ore to leave the country for extraction and beyond.

 

[SSGcommandoPAK]

when will we hear official stance from government ? about the economic package and success in visit to China?

 

[PakSword]

do we have this much gold ....???

Every country has some gold reserves. Currency concept is based on gold.. Have you ever read a promise/ guarantee on old Pakistani currency notes (which doesn't exist now)

That was about commodities..

It meant that state bank will provide the bearer of this bill the equivalent amount of commodity.

Right now, Pakistan has around 2.5 billion dollar worth of gold (reserves). In actual terms, all the trillions of rupees that are currently being floated (1800 billion rupees), government can only provide 2.5 billion dollar gold against all these notes if our public asks government to fulfill its promise.. It's not just Pakistan, every currency in the world is overvalued when it is compared to gold.

This is the biggest scam..

Anyway, Pakistan has 2.5 billion dollar gold reserves, and around 500 billion dollars un-extracted gold and copper reserves in roko diq..

 

[HRK]

Every country has some gold reserves. Currency concept is based on gold.. Have you ever read a promise/ guarantee on old Pakistani currency notes (which doesn't exist now)

catching word is "SOME" .... dear before to lecture plz read about the subject ....

 

[Hakikat ve Hikmet]

There's no alternative to victory - Gen Douglas MacArthur, Allied C-in-C in the Pacific Theater during WW2

"My center is giving way, my right is in retreat; situation excellent. I shall attack." - Marshal Ferdinand Foch, Allied C-in-C during WW1

IK plays to win....

 

[aziqbal]

All CPEC loans and future trading will be done in Chinese currency not dollar. Plus, Pakistan will be the first country in the world which going to recognize Chinese Yuan as trading currency instead of Dollar or Euro .

Now this is what makes world change

Big move, but oil is still trade in dollars

With China we need to introduce more of these type of deals

 

[PakSword]

catching word is "SOME" .... dear before to lecture plz read about the subject ....

I don't need to give lecture. This forum is not a place to do this.
Please read my full comment. Thanks

Right now, Pakistan has around 2.5 billion dollar worth of gold (reserves).

Anyway, Pakistan has 2.5 billion dollar gold reserves, and around 500 billion dollars un-extracted gold and copper reserves in roko diq

There is no proof because we have not yet seen the pudding( forget about even tasting it). The caretaker Balochi government gave them away for 2% royalty and allowing the ore to leave the country for extraction and beyond.

Proven. Extraction started in mid 2000s. Then our courts realized that the contract terms were highly tilted in favor of the extraction company. It ordered the company to stop.

Company took us to international court. We were fined because we couldn't fulfill the contract.

So it's real bro.

 

[maithil]

Isnt currency swap facility already in place since 2011 ?

There is a reason why exporters still dont use this. And also a reason behind China's insistence on profits from CPEC projects on USD.