Pakistan rejects use of Chinese currency in Gwadar Free Zone

[AZADPAKISTAN2009]

Pakistan should give Chinese some flexibility to implement their ideas like they did with Shanghai



It is easier for Traders to do trade in Chinese currency
It is easier for Traders to do trade in US currency
It is easier for Traders to do trade in Euro currency or British Pound
It is easier for Traders to do trade in Gold
It is easier for Trader to do trade in Ruble currency

Pakistan should just collect a tiny 2% tax when traders use the foreign currency option to pay for service goes to Pakistani State Bank. This is on port trade Bank to Bank payment

For general day to day , transaction like food , and residence or travel the Banks should allow the traders to exchange currency to Pakistani funds at Pakistan State Money Exchange or simply use a Credit card (Pakistan Rupee Card) which they can later pay up Online Banking from their foreign currency account



Let Chinese friends do their thing ! ...

As a Trader it is fantastic if you can pay with different currency

 

[Beast]

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.


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.

RMB do buy oil. Ask Venezuela and Russia.

 

[AZADPAKISTAN2009]

Dealing with multiple currency would also attract many international banks to Gwadar
Job creation is key here

• Banks would hire 10,000-50,000 people

Chinese Currency -> Bank of China
US Dollar -> Perhaps a US bank Entry into Pakistan
Euro Dollar -> UK banks already operate in Pakistan , may be we will see a European Bank
Russian Ruble-> Russian Bank Opens a branch in Pakistan

• Many Pakistani Banks already have branches in Pakistan (Dealing with various currencies)

2% tax on goods payment reasonable

• 1 billion trade goes thru , Pakistan State Bank collects $20 million
• 5 billion trade goes thru , Pakistan State Bank collects $100 million
• 15 billion trade goes thru , Pakistan State Bank collects $300 million

I think Even Pakistani Traders would welcome chance to open various other currency accounts inside Pakistan

 

[Clutch]

I think this is more of a move to appease the Americans.... Just to ensure we don't put all our eggs in one China basket.

Having said that... I wish they had allowed the Chinese yuan to be legal tender ... because I believe the the US dollar is the past and the Chinese yuan if the future... and to watch Modis and all the Hindutva heads explode...

 

[AZADPAKISTAN2009]

Chinese delegates are 100% correct to request trade in Chinese currency due to greater stability and similarly Pakistan needs to expand it's horizon and treat Gwadar as international Hub which can't be just restricted with Pakistani Currency demands etc

All customers should have option to pick and choose their Currency

Banks in Gwadar sould be there to handle any transfer and conversion in 12 hour fast track speed and also send 2% to state Bank of Pakistan for transaction fee

Pakistani currency should only come to play when it attains parity with International currencies

If I was a trader I come from China to Pakistan why would I spend 4-5 Business days dealing with hassle of currency conversion and Pakistani Bank's bureaucracy I need fast speed like in international trade hubs !!! Also if Chinese trader , collects funds in Pakistan why should they have to waste 10-15 days in Pakistani Banks to transfer money to China etc and may be over 10 days Pakistani currency may lose it's value


It should be nice and easy process

International Money comes in Gwadar -> Banks Transfer Chinese funds to China 2% is sent to Pakistan State Bank as tax deposit Nice and simple

Pakistan has to revise all the outdated laws it has in Pakistan about money / trading and money transfer etc


Imagine if a trade comes from Europe to Pakistan why would he spend 10-15 days and waste going to Pakistani banks in and out and getting silly state bank approvals and all the other red tape ... of converting cash .... really ? ???

It is common sense !!!

So let Chinese use Chinese currency , they collect it and rebate 2% to Pakistan State bank keep it nice and simple


You deal with Dollar when US trader comes to your DOOR !!!
Lets Assume Bill Gates still had Microsoft , he comes to Pakistan does some trade and says I want to use US dollar only account fine ... give him US dollar account and Banks should be able to deduct 2 % from it and send it to state bank as fee

Problem solved keep it simple


Trade in All 5 Major currencies
> Chinese
> Euro
> US
> British
> Russian

Let the individual trader decide what currency they wish to trade in !!!

 

[HannibalBarca]

4 pages ... 50 post( +1 with mine) and only 1 usefull comment (almost)
It's always a beautiful sight to see ppl speaking about currency... when...well... anyway

Have Fun

 

[Verve]

Wait for this PMLN government to leave, and RMB will be allowed in Gwadar.

It should happen. All major stores in UK accept Euro, no such 'sovereignty' issues here.

And who wouldn't want soon-to-be gold backed currency ... Pakistanis have been holding hard US$, why not RMB!?

 

[Hakikat ve Hikmet]

IMO it's a good move!!!! Already Pak is the cause of chronic nightmares for POTUS!!!! Who wants to drive it to the level of clinical schizophrenia?????

 

[Chhatrapati]

RMB do buy oil. Ask Venezuela and Russia.

They said, they don't buy or sell crude oil using RMB. They only trade RMB with China. Tell me when KSA, use RMB to sell oil to India, US, Or Japan in that matter.

 

[RescueRanger]

Watch this space!

 

[Bouncer]

Using another countries' currency as a legal tender has a few problems,

1. Government looses control on key monetary controls that can only be implemented in PKR.
2. Black money is already a huge problem in Pakistan. Legally allowing another currency will exacerbate this problem to unimaginable levels.
3. GOP will have zero control over RMBs exchange rate.
4. Investors will flock to buy a foreign currency they can use anytime in the local market thereby undermining PKR's remaining strength.
5. Finally, it will not remain limited to Gawadar. And once launched and once investors have bought piles of RMB with black money, it will be next to impossible to reverse this.

Few examples of countries where external currencies are legally allowed;

1. Namibia has pegged Namibian Dollar to South African Rand. And the Rand can be used in Namibia.
2. Nepal allows Indian currency to be used, with some caveats.
3. Congo allows USD to be used freely.

Our Chinese brothers are welcome to invest in Pakistan. But lets not encourage them to abuse this goodwill.

Edit: a word

 

[Sanchez]

Using another countries' currency as a legal tender has a few problems,

1. Government looses control on key monetary controls that can only be implemented in PKR.
2. Black money is already a huge problem in Pakistan. Legally allowing another currency will exacerbate this problem to unimaginable levels.
3. GOP will have zero control over RMBs exchange rate.
4. Investors will flock to buy a foreign currency they can use anytime in the local market thereby undermining PKR's remaining strength.
5. Finally, it will not remain limited to Gawadar. And once launched and once investors have bought piles of RMB with black money, it will be next to impossible to reverse this.

Few examples of countries where external currencies are legally allowed;

1. Namibia has pegged Namibian Dollar to South African Rand. And the Rand can be used in Namibia.
2. Nepal allows Indian currency to be used, with some caveats.
3. Congo allows USD to be used freely.

Our Chinese brothers are welcome to invest in Pakistan. But lets not encourage them to abuse this goodwill.

Edit: a word

You could add Zimbabwe that uses Chinese RMB as one of their legal currencies！

In addition Chinese tourists can spend RMB directly in Russia，Mogolia，Vietnam， Nepal， Kazakhstan and a few other countries. China has made currency swap agreements in bilateral trade with more than 20 major countries！

The extent of internationalization of RMB might be higher than that you know. China has set up currency conversion centers in EU. CPEC investment as well as workers are mainly from China initially. Legalisation of the local use of multiple currencies such as USD and RMB in Gwadar may not be a bad idea！

 

[Bouncer]

You could add Zimbabwe that uses Chinese RMB as one of their legal currencies！

Zimbabwe. Not a good example to give if you are trying to convince a country to use your currency brother

In addition Chinese tourists can spend RMB directly in Russia，Mogolia，Vietnam， Nepal， Kazakhstan and a few other countries. China has made currency swap agreements in bilateral trade with more than 20 major countries！

Tourists can always go to a money changer. And we do already have a currency swap with China since 2011 and I believe it is going to be extended. However currency swap and making that currency a legal tender are totally different things.

The extent of internationalization of RMB might be higher than that you know. China has set up currency conversion centers in EU. CPEC investment as well as workers are mainly from China initially. Legalisation of the local use of multiple currencies such as USD and RMB in Gwadar may not be a bad idea！

I am not doubting RMB's international clout. It is definitely one of the major currencies of the world, and it will only gain importance the way things are going. And given our close relationship with China, I believe we need to enhance the swap agreement. But I still stand against legalizing the RMB, or any other currency for that matter.

 

[BATMAN]

Who is this man called Pakistan, who's taking decision on every Pakistanis behalf?

 

[Adam WANG SHANGHAI MEGA]

i never heared that our gov china gov made such demand wahtsoever,another invented story by indians! haha lol!

not new to me!No one on this planet can shake the iron brotherhood china pakistan have!