Pakistan, China sign six agreements to bolster trade, economic cooperation

[Dance]

ISLAMABAD, Dec 23 (APP)Pakistan and China on Friday signed six bilateral agreements including a Currency Swap Agreement to further bolster their existing trade and economic cooperation.The agreements worth over US $ 700 million were signed between the two sides at a ceremony held here at the PM House and was also witnessed by Prime Minister Syed Yusuf Raza Gilani and State Councillor of China Dai Bingguo.
The Supplementary Agreement on Extension of Five Year Development Programme on Trade and Economic Cooperation between the two countries was signed by Secretary Economic Affairs Division, Wajid Rana and Vice Minister of the Chinese Ministry of Commerce, Li Jinzao on behalf of their respective governments.
The Inter-Governmental Framework Agreement on Additional Financing for Improvement of KKH ($ 90 million) between the two countries was also signed by Wajid Rana and Li Jinzao.
The Currency Swap Agreement was signed by Governor State Bank of Pakistan, Yaseen Anwar and Vice Governor of the People’s Bank of China, Du Jinfu.
The Concessional Loan Agreement on Additional Financing for Improvement of KKH ($ 90 million) between the Economic Affairs Division (EAD) and the Export-Import Bank (EXIM Bank) of China was signed by Secretary EAD, Wajid Rana and the Vice Governor of EXIM Bank, Sun Ping.
The Loan Agreement on Provision of $ 259 million Preferential Buyer’s Credit for KKH (Karakorum Highway) Realignment at Attabad between EAD and the EXIM Bank of China was also signed by Wajid Rana and Sun Ping.
The Loan Agreement on Export Credit Facility of $ 464 million for Power Plant between Guddu Power Company and EXIM Bank of China was signed by CEO Central Power Generation Company Limited (GENCO-II), Aslam Sheikh and the Vice Governor of China’s EXIM Bank, Sun Ping.

Associated Press Of Pakistan ( Pakistan's Premier NEWS Agency ) - Pakistan, China sign six agreements to bolster trade, economic cooperation

 

[somebozo]

I think Pakistan is looking forward to Russia China type currency aggrement..to free itself from the cluthes of western colonials and IMF using finance as their weapon of choice! Over time, it will be benefitical if the entire SCO bloc can move to a unified currency shedding dollar as a standard for bilateral trade.

 

[oct605032048]

Bilateral CSA signed between SBP, PBC

KARACHI: A landmark bilateral Currency Swap Arrangement (CSA) has been signed between State Bank of Pakistan (SBP) and the People’s Bank of China (PBC) in Islamabad.

Governor SBP Yaseen Anwar and Deputy Governor PBC DU Jinfu signed the document.

The bilateral CSA has been concluded in Chinese yuan CNY 10 billion and Pakistan currency Rs 140 billion for the purpose of promoting bilateral trade and investment and strengthening financial cooperation. The currency swap would expire in three years, but could be extended with mutual consent.

We expect bi-lateral trade and investment will grow between Pakistan and China as a result of this agreement, further augmenting the economic ties of the two countries, both the parties added. This agreement will make a significant contribution in further strengthening the close and special relationship between the two countries.

Announcement of the CSA between the two Central Banks will give positive signal to the market on the availability of liquidity of the other country’s currency on the onshore market. As a result it will promote bi-lateral trade denominated in Chinese yuan and Pakistan rupee. staff report

 

[Devil Soul]

China Announces Currency Swap With Pakistan
BEIJING (AP) — China announced a currency swap with Pakistan on Saturday in a new step to gradually expand use of its tightly controlled yuan abroad.

Beijing has begun allowing limited use of yuan in trade with Hong Kong and Southeast Asia in a move that could help to boost exports. It has signed swap currency deals with central banks in Thailand, Argentina and some other countries.

The Chinese central bank said it agreed Friday with its Pakistani counterpart to swap 10 billion yuan ($1.6 billion) for 140 billion Pakistani rupees. It said the money would promote investment and trade but gave no details of how it would be used.

Such agreements give central banks access to each other's currency but commercial banks still need to create systems to issue letters of credit and handle other transactions in those currencies before companies can use them.

The United States and other trading partners complain Beijing's controls on the yuan keep it undervalued, giving its exporters an unfair price advantage and hurting foreign competitors at a time when the global economy is struggling.

Some American lawmakers are demanding punitive tariffs on Chinese goods if Beijing fails to move more quickly in easing its controls.

Expanded use of the yuan abroad would reduce costs for Chinese traders who do most of their business in dollars and euros. It also might increase the appeal of Chinese goods for foreign buyers who have yuan to spend.

Beijing also has created a market for yuan-denominated bonds in Hong Kong. It said last week that some foreign investors who obtain yuan abroad would be allowed to invest them in China's stock markets.

The Chinese central bank announced a currency swap agreement with Thailand this week and has carried out swaps with Argentina and Kazakhstan. It has pledged to lend yuan to some other countries' central banks in case of emergencies.

Chinese leaders say they plan eventually to allow the yuan to trade freely abroad but analysts say it might be decades before that is completed.