Pak, China says goodbye to US Dollars under CPEC Prog

ISLAMABAD: Minister for Planning, Development and Interior Ahsan Iqbal has said the Chinese currency RMB would be used for transactions under the China Pakistan Economic Corridor.

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Pakistan and China agreed on saying goodbye to the US dollar for bilateral trade, loans and repayments as well as profit repatriation and now both the countries would use the Chinese currency RMB under a Long Term Plan (LTP) for 2017-2030.

“Experts of both sides will explore the possibility of using the Chinese currency (RMB) for undertaking bilateral trade as it will help Pakistan in reducing its dependence on the US dollar,” Ahsan Iqbal told reporters after launching the Long Term Plan for CPEC here at the P Block Auditorium on Monday. The Chinese Ambassador to Pakistan, Yao Jing, was also present on the occasion.

However, the minister said Pakistan’s rupee would be used in Gwadar and other areas where CPEC projects are underway. Pakistan has rejected the Chinese demand for using its RMB currency in Gwadar, which took quite long for signing the agreement on LTP.

Under the plan, the two countries agreed to explore multi-level cooperation mechanisms and strengthen policy coordination, including their own financial reforms and opening up, besides innovating financial products and services to control financial risks.

The two sides agreed to establish and improve cross-border credit system and financial services, strengthen currency swap arrangements and establish a bilateral payment and settlement system.

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