Chinese Yuan to replace US dollar in Pakistan – Research Snipers

Chinese Yuan to replace US dollar in Pakistan

Ahsan Iqbal Minister for Planning and Development said that the government is considering replacing the US dollar with the Chinese yuan in order to boost trade between China and Pakistan.

He informed this after the CPEC 2017-30 long-term plan was revealed and signed by both China and Pakistan.

The launching ceremony was attended by Yao Jing Chinese Ambassador and officials of the provincial governments.

When the interior minister was asked that whether the Chinese currency will be used in Pakistan, he replied that in Pakistan, Pakistani currency will be used but China wants that bilateral trade is done in Chinese currency that is Renminbi (RMB) or yuan and  “we are examining the use of RMB instead of the US dollar for trade between the two countries”.

He believes that RMB will benefit Pakistan’s economy. Moreover, the Minister cleared that China is still funding the CPEC projects and any rumor and report contrary to it are false.

Read more: China halts funding of 3 CPEC projects

He informed that all projects are going on with same commitment and progress as before following the formal procedures and codes.

The 26 page document of Long Term CPEC Plan covers seven areas of cooperation and has three phases. First phase will end in 2020, second phase will end in 2025 and third phase will end in 2030. The areas where both the countries are working include connectivity, energy, trade and industrial parks, agricultural development and poverty alleviation, tourism, people’s livelihood and exchange programs and financial cooperation.

The document says “The plan would be adjusted based on real situation as well as the consensus between the parties during the course of implementation…New routes, nodes and aspects may be considered for inclusion in future by mutual agreement.”

Both sides, as per the document agree to discover multi-level cooperation mechanisms and improve the policy coordination.