Imran Khan wins biggest trade favor from China

[HAIDER]

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 .

 

[Max]

Good deal, I think many other countries including Russia have currency swap agreement with China..

 

[HAIDER]

Good deal, I think many other countries including Russia have currency swap agreement with China..

That will be huge CPEC debt payment relief . Otherwise who knows dollar ends up 200 Rupee.

 

[nangyale]

That should put an end to the endless. "IMF money can not be used to pay back cpec loans" comments

 

[war&peace]

I won't damage the dollar but it will help Pakistan so it is a nice move.

 

[VCheng]

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 .

Does this mean China will accept PKRs as payments too?

 

[HAIDER]

Does this mean China will accept PKRs as payments too?

Its question of exchange rate. US already want China to float its currency in open market to check the real value.

 

[Max]

That will be huge CPEC debt payment relief . Otherwise who knows dollar ends up 200 Rupee.

Yeah this will help, but only long term solution is to increase exports, Keep asking China for favourable terms, early completion of SEZs, transfer of industry etc to balance huge trade deficit.

 

[HAIDER]

Yeah this will help, but only long term solution is to increase exports, Keep asking China for favourable terms, transfer of industry etc to balance huge trade deficit.

If i am not wrong IK wants Vietnam type trade agreement with China. Which help flourish local industry and Chinese investor earned good profit.

 

[Max]

If i am not wrong IK wants Vietnam type trade agreement with China. Which help flourish local industry and Chinese investor walk with good profit.

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

 

[VCheng]

Its question of exchange rate. US already want China to float its currency in open market to check the real value.

So the deal is one-sided?

 

[HAIDER]

So the deal is one-sided?

Don't have much info ...obviously Pakistani side is not in condition to set the rules. Right now IK biggest priority is debt payments .

 

[YeBeWarned]

I won't damage the dollar but it will help Pakistan so it is a nice move.

we are not out there to damage Dollar, we are there to look out for ourselves , Pakistan first ..
Good deal struct by Pakistan, much more was on the table , but its best to keep things slow

 

[Sugarcane]

That will be huge CPEC debt payment relief . Otherwise who knows dollar ends up 200 Rupee.

If USD reach 200, CNY will also increase proportionately as CNY is pegged against USD. Unless we increase our exports to China and achieve trade surplus we will remain in trouble.

 

[VCheng]

Don't have much info ...obviously Pakistani side is not in condition to set the rules. Right now IK biggest priority is debt payments .

Yes, but how does Pakistan get enough Yuans to pay for its dealings with China? If it can convert its PKRs into Yuan, great. If it needs to arrange for USDs to buy the Yuans, then not so great.