Bank of China Officially Launches Yuan Banking Services in Pakistan

Bank of China has officially launched the Yuan Currency along with its clearing and settlement services in Karachi, Pakistan.

Last month, we informed our readers that State Bank of Pakistan has given permission to Bank of China to establish Chinese Yuan Settlement system in Pakistan. It will allow the customers of the bank in Pakistan to make their payments in the Chinese Yuan currency. The aim of this step is to strengthen and boost relations between Pakistan and China.

This tweet explains all, “Bank of China has rolled out yuan clearing&settlement services in Pakistan, to push redback’s expansion in S Asia. It will help mitigate exch. rate risks, lowering transaction costs n facilitating trade n investment btw Pak China, State Bank of Pakistan greenlit the plan in April”

Bank of China is permitted to open yuan bank accounts. With this step taken it will be easier for customers to receive or sent remittances to/from China.

China has appreciated the official launching of Yuan services in Pakistan. It will boost bilateral trade, investment & transaction procedure. Along with this, it will help mitigate exch. rate risks, lowering transaction cost, in short, facilitating trade and commerce. The Bank of China has already started operations via its first bank in Pakistan.

Must read: China is now the largest trading partner of Pakistan

Earlier State Bank of Pakistan said, “These steps are part of efforts to encourage trade with China in yuan and eventually in the respective local currencies. This settlement and clearing mechanism is expected to reduce costs and increase efficiency for the local banking system in transacting in Chinese yuan, enhance market liquidity and facilitate settlement of growing trade and investment transactions between China and Pakistan in yuan.”