Khaqan Humayun
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Pakistan, China and Russia decide to conduct trade in local currencies skip dollars
A road map will be finalized and signed at SCO's Finance Ministers' meeting in Moscow on March 18th. Represent.
As per details, a road map will be finalized and signed at SCO’s Finance Ministers’ meeting in Moscow on March 18th.
Russia, as chairman of the Shanghai Cooperation Organization, has called for suggestions from all member states for trade and investment in local currencies. After a detailed review of these proposals in Moscow’s meeting, a system of mutual settlement of national currencies will be introduced for the member countries of the SCO.
All member states will sign a roadmap for trade and investment in national currencies between member states. Russia has issued the agenda for the SCO’s Finance Ministers’ meeting summoned in Moscow on March 18.
As per reports, the finance ministry of Pakistan has completed preparations in light of the agenda of the conference of finance ministers.
Representatives from the finance ministries and central banks of China, India, Russia, Pakistan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan will attend the SCO conference in Moscow.
In addition, Iran, Afghanistan, Belarus, and Mongolia are the observer countries of the SCO who wish to become a regular member of the organization.
Reports say that if the trade and investment between the member states of the SCO begin in national currencies instead of dollars and pounds, it will be a big breakthrough. It will also strengthen the national currencies of the member countries and promote mutual trade and investment.
Exports to Afghanistan in local currency under study
Fearing disruptions in export proceeds, the government has decided in principle to look into various options including allowing exports of additional items in local currency to Afghanistan on land routes owing to non-availability of tradable currency through banking channels.
As part of the facilitation, the State Bank of Pakistan (SBP) has extended the facility of cash convertible currencies as export proceeds for settlement of export to Afghanistan and Central Asian States, which expired on Oct 15, 2021. The facility is now extended until Dec 31, 2021.
Under the facility, authorised dealers will accept cash convertible currencies brought over their counters as export proceeds without asking for customs declaration for passengers. On July 2, the SBP issued a circular revising the procedures and made it mandatory for exporters to show evidence of the dollars at the time of issuing Form E.
The change was resisted by the stakeholders including exporters, with the result the SBP put the requirements in abeyance until Oct 15, 2021 which was further extended to Dec 31, 2021.
Pakistan, China agree to trade in yuan
Pakistan on Monday announced an agreement with China to use Chinese currency for bilateral trade to end the burden of relying on U.S. dollars.
'China and Pakistan agreed to start trading in the yuan instead of the dollar,' Fawad Chaudhry, minister of information, told reporters in Islamabad.
This agreement, reached during the Pakistani premier’s current visit to China, would help Pakistan get rid of the dollar burden in $15 billion of bilateral trade, he added.
Imran Khan’s four-day official visit to China is ending Monday.
The move to Chinese currency would also help both countries replace the U.S. dollar for their transactions and investment in the multi-billion dollar China-Pakistan Economic Corridor (CPEC).
This June, the State Bank of Pakistan formally allowed both public and private enterprises to use Chinese currency for bilateral trade and investment activities.
The $54-billion CPEC project aims to connect China's strategically important northwestern Xinxiang province to the Pakistani port of Gwadar, Baluchistan through a network of roads, railways, and pipelines to transport cargo, oil, and gas.
The economic corridor would not only provide China cheaper access to Africa and the Mideast but also earn Pakistan billions of dollars for providing transit facilities to the world’s second-largest economy.
Under current foreign exchange regulations, the Chinese yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan, like other international currencies such as the U.S. dollar and euro.
The State Bank of Pakistan has already put in place the required regulatory framework facilitating the use of the yuan in trade and investment transactions such as the opening of letters of credit and availing financing facilities.
A road map will be finalized and signed at SCO's Finance Ministers' meeting in Moscow on March 18th. Represent.
As per details, a road map will be finalized and signed at SCO’s Finance Ministers’ meeting in Moscow on March 18th.
Russia, as chairman of the Shanghai Cooperation Organization, has called for suggestions from all member states for trade and investment in local currencies. After a detailed review of these proposals in Moscow’s meeting, a system of mutual settlement of national currencies will be introduced for the member countries of the SCO.
All member states will sign a roadmap for trade and investment in national currencies between member states. Russia has issued the agenda for the SCO’s Finance Ministers’ meeting summoned in Moscow on March 18.
As per reports, the finance ministry of Pakistan has completed preparations in light of the agenda of the conference of finance ministers.
Representatives from the finance ministries and central banks of China, India, Russia, Pakistan, Kyrgyzstan, Russia, Tajikistan and Uzbekistan will attend the SCO conference in Moscow.
In addition, Iran, Afghanistan, Belarus, and Mongolia are the observer countries of the SCO who wish to become a regular member of the organization.
Reports say that if the trade and investment between the member states of the SCO begin in national currencies instead of dollars and pounds, it will be a big breakthrough. It will also strengthen the national currencies of the member countries and promote mutual trade and investment.
Exports to Afghanistan in local currency under study
Fearing disruptions in export proceeds, the government has decided in principle to look into various options including allowing exports of additional items in local currency to Afghanistan on land routes owing to non-availability of tradable currency through banking channels.
As part of the facilitation, the State Bank of Pakistan (SBP) has extended the facility of cash convertible currencies as export proceeds for settlement of export to Afghanistan and Central Asian States, which expired on Oct 15, 2021. The facility is now extended until Dec 31, 2021.
Under the facility, authorised dealers will accept cash convertible currencies brought over their counters as export proceeds without asking for customs declaration for passengers. On July 2, the SBP issued a circular revising the procedures and made it mandatory for exporters to show evidence of the dollars at the time of issuing Form E.
The change was resisted by the stakeholders including exporters, with the result the SBP put the requirements in abeyance until Oct 15, 2021 which was further extended to Dec 31, 2021.
Pakistan, China agree to trade in yuan
Pakistan on Monday announced an agreement with China to use Chinese currency for bilateral trade to end the burden of relying on U.S. dollars.
'China and Pakistan agreed to start trading in the yuan instead of the dollar,' Fawad Chaudhry, minister of information, told reporters in Islamabad.
This agreement, reached during the Pakistani premier’s current visit to China, would help Pakistan get rid of the dollar burden in $15 billion of bilateral trade, he added.
Imran Khan’s four-day official visit to China is ending Monday.
The move to Chinese currency would also help both countries replace the U.S. dollar for their transactions and investment in the multi-billion dollar China-Pakistan Economic Corridor (CPEC).
This June, the State Bank of Pakistan formally allowed both public and private enterprises to use Chinese currency for bilateral trade and investment activities.
The $54-billion CPEC project aims to connect China's strategically important northwestern Xinxiang province to the Pakistani port of Gwadar, Baluchistan through a network of roads, railways, and pipelines to transport cargo, oil, and gas.
The economic corridor would not only provide China cheaper access to Africa and the Mideast but also earn Pakistan billions of dollars for providing transit facilities to the world’s second-largest economy.
Under current foreign exchange regulations, the Chinese yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan, like other international currencies such as the U.S. dollar and euro.
The State Bank of Pakistan has already put in place the required regulatory framework facilitating the use of the yuan in trade and investment transactions such as the opening of letters of credit and availing financing facilities.
