Yuan to replace the US dollar for some CPEC projects.
As per a major development, Pakistan and China have mutually agreed to use the Renminbi or RMB for future energy projects to be developed under the China Pakistan Economic Corridor—CPEC.
Regarding this, an official summary would be presented in the next meeting of the ECC—Economic Coordination Committee. If this summary gets the approval, the US dollar would then be replaced with RMB in all the energy projects developed under CPEC in future.
On Monday, a meeting of the Joint Working Group—JWG of CPEC was conducted during which the use of RMB for the future energy projects was suggested.
Minister of National Development and Reform Commission—NRDC of China and the Federal Minister for Planning Development and Reform would be addressing the press conference after the meeting of the JCC which is to be held today.
Senior officials of the IMF were contacted by the various media outlets for commenting on this development. The IMF officials did not respond and refrained from sharing their views without learning about the complete proposal.
But the IMF officials did mention that the Chinese currency is already a part of the Special Drawing Rights basket of the IMF. Other than it, RMB, Euro, Yen of Japan, the US dollar and the British Pound are also in the basket of SDR of IMF.
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