ISLAMABAD: Interior Minister Ahsan Iqbal on Saturday announced that Pakistan and China will use their respective currencies in their bilateral trade.The currency swap agreement was signed earlier between Islamabad and Beijing in 2011, allowing both countries to make transactions in either Pakistani rupee or Chinese .According to the agreement, the State Bank of Pakistan (SBP) can take a loan of as much as 10 billion Yuan from the Peoples Bank of China and can return the loan by giving Rs140 billion.
As a result of the agreement, Pakistani foreign reserves would receive Chinese Yuan which would be provided to the banks. SBP is mandated to auction the loan facility in Yuan. The banks will then be allowed to form swap lines with SBP and provide loan facility to its customers allowing them to make payments through the currency.
The agreement would have been in place for six years on December 3. Financial circles have expressed their surprise on the interior minister’s announcement, saying that when an agreement already xists, how could it be started from the scratch. The facility has not yet been properly utilised.Experts have reiterated that if the transactions are made using the respective currencies, then natually Pakistan’s economy will be less dependent on US dollar.
Trending
- CEC AJK Justice (R) Abdul Rasheed Salharia calls on President Barrister Sultan Mahmood Chaudhry
- AJK IRD Nongazetted Employees body thanks AJK govt. for its sympathetic consideration to solve Issues confronted by the employees during professional duties.
- Pasban-e-Hurriyat condemns more than 100 recent detentions in occupied Kashmir
- Chaudhary Naeem Akhtar says Saudi Arabia played a pivotal role in improving Pakistan’s economic situation
- International Symposium to remember Kashmiri leader Amanullah Khan on his 8th Death Anniversary tomorrow- Friday – April 26:
- Local elections are being held in the UK next week on May 2
- Chaudhry Anwarul Haq will be the PM of AJK in the future as well. Usman Haidari
- Cleaners are the most important people of our society: Rai Muhammad Akbar