Pakistani central bank allows Chinese currency for bilateral trade
The central bank of Pakistan gave the green light to the use of Chinese yuan (CNY) for bilateral trade and investment activities, ensuring that imports, exports and financing transactions can be denominated in the Chinese currency.
In a press release late Tuesday, the State Bank of Pakistan (SBP) said that Chinese yuan is an approved foreign currency for denominating foreign currency transactions in Pakistan.
"SBP has already put in place the required regulatory framework which facilitates use of CNY in trade and investment transactions," the bank said.
In terms of regulations in Pakistan, CNY is on a par with other international currencies such as the US dollar, the euro and the Japanese yen, the statement added.
Last month, at the formal launch of Long Term Plan for the CPEC 2017-30, Minister for Planning and Development Ahsan Iqbal said that the government was examining a proposal to use the Chinese yuan for trade between China and Pakistan.