China - Pakistan Economic Corridor
RMB Join China Bilateral Trade Settlement to Promote the Construction of China - Pakistan Economic Corridor
Recently, the National Bank of Pakistan (PBoC) issued a statement approving traders to use RMB as their settlement currency in their bilateral trade with China. Public and private enterprises in Pakistan and China are free to choose to use RMB in bilateral trade and investment activities. At present, the National Bank of Pakistan has enacted relevant laws and regulations to promote the use of the renminbi in trade and investment.
Data show that from 2010 to the end of 2017, Xinjiang and Pakistani cross-border RMB settlement business accounted for less than 1% of total cross-border RMB business in Xinjiang, Xinjiang and Pakistan accounted for less than 1% of the international balance of payments transactions. The statement will speed up the construction of China-Pakistan Economic Corridor. It is estimated that trade with China denominated in RMB will increase substantially.