Pakistan introduces use of “Yuan” in its trade transactions

Islamabad: Pakistan has initiated the use of the Chinese currency “Yuan” in its international trade transactions. This was officially announced by the Pakistani central bank “State Bank of Pakistan” and has allowed Pakistani companies and businessmen to use Yuan in their transactions. This decision of Pakistan is considered to be a retaliation to the warning issued by President Donald Trump. This decision indicates that the rift between the U.S and Pakistan will grow deeper while forging a tighter bond between China-Pakistan.

In an important meeting held last month between China and Pakistan, Pakistan’s Internal Security and Planning, Development and Reforms Minister Ahsaan Iqbal had indicated that Pakistan might start using the Chinese Yuan in the near future. Iqbal had also claimed that the use of Yuan does not go against the interests of Pakistan, on the contrary it will benefit the nation. Pakistan’s decision to introduce the Yuan in a mere two weeks’ time following this, has endorsed the increasing closeness between Pakistan and China.

“A strategic decision has been made about using the Yuan henceforth for exports, imports and other financial transactions. The Yuan will be used in the same way as other international currencies like the US Dollar and the Euro. Pakistani companies can begin using the Yuan with immediate effect. The necessary regulatory framework for this has been put into place. This will enable the use of Yuan in trade and investments” was the clarification given in a statement issued by the “State Bank of Pakistan”.

In its statement, the “State Bank of Pakistan” gave special mention to the China-Pakistan Economic Corridor (CPEC) as well as the increasing trade between the two countries. China, who has entered into a Free Trade Agreement with Pakistan, has invested more than 60 billion dollars in Pakistan under the CPEC in the past decade. It is also said that in 2016, the trade between the two countries had reached 13.8 billion dollars.