CPEC Trade Chinese Yuan Replace US Dollar in Pakistan Great Proposal

CPEC Trade Chinese Yuan Replace US Dollar Update:

Pakistan is considering a proposal to replace the U.S. dollar with the Chinese yuan for bilateral trade between Pakistan and China. Minister for Planning and Development Ahsan Iqbal said on 18th December 2017 that the government was examining a proposal to replace the US dollar with the Chinese yuan for trade between China and Pakistan. CPEC Trade Chinese Yuan Replace US Dollar.

CPEC Trade Chinese Yuan Replace US Dollar. He was talking to journalists after the formal launch of Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC) 2017-30 signed by the two sides on Nov 21st 2017.

Read: China Rejects Donald Trump Critique Against Pakistan on US Afghanistan strategy

Newly-appointed Chinese Ambassador Yao Jing and officials of the provincial governments also attended the launching ceremony. CPEC Trade Chinese Yuan Replace US Dollar.

CPEC Trade Chinese Yuan Replace US Dollar. The long-term plan highlighted key cooperation areas between the neighboring states including road and rail connections, information network infrastructure, energy, trade and industrial parks, agriculture, poverty alleviation and tourism.

Upon asking Mr. Ahsan Iqbal, whether the Chinese Yuan (or Renminbi as it is officially called in China) is allowed to be used in Pakistan, he said that the currency would be used within the country. However, he added that China wishes that it should only be used for bilateral trade.
Ahsan Iqbal told on this occasion:

"We are examining the use of RMB instead of the US dollar for trade between the two countries. The use of RMB was not against the interest of Pakistan, rather it would benefit the country."

China-Pakistan Economic Corridor

The minister also cleared some misconceptions that existed recently. He clarified that there’s no truth to reports of China not investing further in the CPEC project. He confirmed that the project is in process of conducting feasibility studies and their scrutiny, as it did with the first phase of investments.

He also explained that all the projects, identified and committed by both sides, had to go through codal formalities after which they would be implemented.

Long-Term Investment Document (LPT)

The 26-page document briefly covers the seven broad areas of cooperation in which both the sides have to contribute to each other in three phases:

• first ending 2020
• followed by another in 2025
• then completion in 2030.

The area of cooperation between the two countries include:

• connectivity
• energy
• trade and industrial parks
• agricultural development and poverty alleviation
  tourism
• people’s livelihood and exchange programmes
• financial cooperation.

It’s stated in the LTP document that:

The plan would be adjusted based on the real situation as well as the consensus between the parties during the course of implementation. New routes, nodes and aspects may be considered for inclusion in future by mutual agreement.

As per the plan, both countries agreed to go with multi-levels of cooperation mechanisms and strengthen policy coordination, which also includes their own financial reforms and opening up, along with innovating financial products and services to control financial risks.

They also agreed to establish as well as improve the cross-border credit system and financial services, strengthening the currency-change arrangements and establish a bilateral payment and settlement system.

Source: Mehran Post