Forese­es yuan-denomi­nated transa­ctions with China to increa­se signif­icantl­yKARACHI: The State Bank of Pakistan (SBP) said on Tuesday that both public and private sector enterprises (ie both Pakistanis and Chinese) are free to choose Chinese yuan (CNY) for bilateral trade and investment activities. As per current foreign exchange regulations, CNY is an approved foreign currency for denominating foreign currency transactions in Pakistan. “In terms of regulations in Pakistan, CNY is at par with other international currencies such as the dollar, euro and Japanese yen etc,” according to a SBP statement. It may be mentioned here that after signing a Currency Swap Agreement with People’s Bank of China (PBoC), SBP had taken a series of steps to promote use of CNY in Pakistan for bilateral trade and investment with China. SBP allowed banks to accept CNY deposits and give CNY trade loans, according to the press release.

Source: The Express Tribune January 03, 2018 05:15 UTC