Pakistan rejects use of Chinese currency in Gwadar Free Zone

[Chinese-Dragon]

Pakistan want to use own currency with in its territory

We have a currency in Pakistan. It will be a better business solution for China to use Pakistani currency in Pakistan.

What about paying for goods that are imported? You need US dollars to import it.

Then what happens when the US finally makes good on their multiple threats to sanction Pakistan?

Anyway, it's your country, your rules. Just be aware that the US is notoriously irrational when it comes to sanctioning other countries.

 

[Imran Khan]

its future dollar man let them use it

 

[El Sidd]

What about paying for goods that are imported? You need US dollars to import it.

Then what happens when the US finally makes good on their multiple threats to sanction Pakistan?

US will not sanction Pakistan.

The only scenario I can think of is not something you wanna know but Pakistan still has lots to gain by dealing in dollar like every other country.

 

[Sugarcane]

What about paying for goods that are imported? You need US dollars to import it.

Then what happens when the US finally makes good on their multiple threats to sanction Pakistan?

Anyway, it's your country, your rules. Just be aware that the US is notoriously irrational when it comes to sanctioning other countries.

It is already in OP that currency swap agreement with China will be extended and limit will be increased, any way the OP is about using Chinese currency in Gawadar not related to import / export.

 

[Chinese-Dragon]

US will not sanction Pakistan.

The only scenario I can think of is not something you wanna know but Pakistan still has lots to gain by dealing in dollar like every other country.

It is already in OP that currency swap agreement with China will be extended and limit will be increased, any way the OP is about using Chinese currency in Gawadar not related to import / export.

Anything you buy/sell that has imported parts or components will have needed US dollars to import it in the first place. Using Yuan is less vulnerable to sanctions.

Pakistan still has lots to gain by dealing in dollar like every other country.

Fair enough. Your country, your rules.

 

[Sugarcane]

Anything you buy/sell that has imported parts or components will have needed US dollars to import it in the first place. Using Yuan is less vulnerable to sanctions.

As I said it's not about Import or Export as the businesses can use the currency in which other party is willing to do business. Here we are talking about port and free zone operations in Yuan i.e. Fees, Charges, tolls etc.

 

[Chinese-Dragon]

As I said it's not about Import or Export as the businesses can use the currency in which other party is willing to do business. Here we are talking about port and free zone operations in Yuan i.e. Fees, Charges, tolls etc.

It's your country you can do what you want.

 

[Sugarcane]

It's your country you can do what you want.

Final agreement will be win-win for both, I don't think it is any major thing. It's only that hype is created for every thing related to CPEC for obvious reasons.

 

[Chinese-Dragon]

Final agreement will be win-win for both, I don't think it is any major thing. It's only that hype is created for every thing related to CPEC for obvious reasons.

Agreed.

I also think the language used in the article is unhelpful, repeatedly using the terms "demand" and "reject" as if it's some kind of armed conflict.

I'm not surprised the article came from the Express Tribune, which is a subsidiary of the Washington Post.

 

[Sugarcane]

Agreed.

I also think the language used in the article is unhelpful, repeatedly using the terms "demand" and "reject" as if it's some kind of armed conflict.

I'm not surprised the article came from the Express Tribune, which is a subsidiary of the Washington Post.

This isn't new actually, when China took over port from Singapore at that time this news also came but both went ahead despite the disagreement. As cost is one of major competitive advantage of China and its also trying for globalization of Yuan, so it is obvious for her to push for port handling rates, charges, fees etc. to be in Yuan to avoid exchange losses, this can be done any time provided Chinese business presence at Gawadar is significant which will surely going to be the case. But for time being grab your popcorn and wait for other media outlets to pick up and project it as another jolt.. Lol

 

[Chhatrapati]

The US is threatened by the expanding influence of the Yuan.

Yeah right, the one that has over 5 trillion a day exchanges vs one that devalues every now and not enough trade volumes, barely added to sdr basket.

But the real question is, why would Pakistan prefer to use US dollars, when America has already threatened to sanction Pakistan multiple times?

Why make it easy for them to carry out their threats?

Because RMB don't buy them crude oil. It's still traded in USD. US never sanctioned Pakistan that could make them go dry of USD (if my knowledge is right), they are still a MNA, with funds awaiting approval.

And US and EU constitute their 20+% percent trade.

@Topic, it'll be better if Pakistan uses RMB short term as reserve, till their debts with China can be re-payed with it. Help save billions of dollars.

 

[AZADPAKISTAN2009]

Chinese currency is fine with me , strong international currency , since Bank of China is in Pakistan should be no problem to transfer funds

Pakistanis own US dollars, so from that perspective it makes no sense to have another currency for trade

Just an option like some people keep Euro or Dollar etc



Pakistan should make it easier for Pakistanis to convert their currency into Chinese currency as Chinese currency is more stable.

Pakistan should make GWADAR port currency independent

• Banks should be allowed to allow people to Open US dollar Account
• Banks should be allowed to allow people to Open Euro Account
• Banks should be allowed to allow people to Open Chinese Currency Account
• Banks should allow Pakistanis to convert their Rupees to Gold
• Banks should allow people to Trade in Russian Rubles

One suggested option that could be considered is foreign currency tax , if trade is done with foreign currency Just charge 2% transaction tax goes directly to state bank of Pakistan It will allow government to estimate amount of trade passing thru Gwadar as well

But if trader want to bring US dollar, Chinese Money , Euro and open a account in Bank in Gwadar why not?

Discuss issue of Trading in Pakistani Currency after 20-50 years let the Port pick up business first


World wide people can keep different currency accounts in world banks

More US dollar , Euro and Chinese currency will flow into Pakistan if this simple offer is available to traders. Traders should have world class money exchange simple process available to them in Pakistan to help convert currency to Pakistani Rupees if needed.


Chinese
Russian
US
European
Pakistani Banks

Banks should be invited to open their international branches in Gwadar

 

[Mrc]

It would be a great idea to use Chinese currency to get trade going at gwadar... I don't know why govt not agreed

 

[The Diplomat]

IT BETTER USE CHIANESE CURRENCY THAN AMERICAN DOLLARS.

Even better is using PKR. In Pakistan our own currency should be the only method of trade domestically.

 

[Samlee]

I believe it is a right move from GOP. otherwise, the right word in above post would be an economic colony

No You Don't Get It Pak Rupee Is Not Being Replaced With Yuan,It Is Just That Yuan Would Be Allowed To Be Used In Gwadar Free Zone.China Wishes To Develop It On The Model Of Shanghai Free Trade Zone


Other Countries Are Fighting To Become Yuan Trading Hub

https://www.cnbc.com/2014/08/27/uk-germany-battle-to-be-chinese-yuan-trading-hubs.html