Pakistan would be allowing the Chinese Yuan to be used for imports, exports and the financial transactions for two-way trade and investment activities, in line with the steps to simplify the enormous Chinese investment project as per the economists on Wednesday.
The public and private both the sector’s enterprises would be able to use the Yuan for bilateral investment and trade activities, as per the statement release of the Central State Bank of Pakistan on Tuesday.
The statement release mentioned that the Chinese Yuan (CNY) is an approved international currency for designating the foreign currency exchanges in Pakistan, according to the present foreign transaction regulations.
It added that CNY is at par along with other foreign currencies like USD, Euro, and JPY in terms of regulations in Pakistan.
The bank added that this step is taken considering the huge Chinese infrastructure project in Pakistan and this initiative would provide long-term advantages to both the nations.
The China Pakistan Economic Corridor (CPEC) has been referred to as the “game changer” for Pakistan by the Pakistani officials. The CPEC project is about $54 billion introduced back in 2013 between western China and Pakistan through the Indian Ocean.
The Pakistan officials believe that the power stations and transmittals lines made as part of the project would assist in simplifying Pakistan’s continuing power issues.
Salman Shah— the Economic analyst and the ex-government adviser on finance appreciated the move of the State Bank and said that the avoidance of the dollar transactions for the implementation of the CPEC would be easing the matters greatly.
The Chinese economy is one of the biggest economies of the world, he added while justifying the use of the Chinese currency.
More Read: China Halts Production of 500 Car Models