The State Bank of Pakistan (SBP) said it “has taken comprehensive policy-related measures to ensure that imports, exports and financing transactions can be denominated in CNY,” according to a statement issued late on Tuesday. CNY is now effectively on par with the US dollar, euro and other international currencies in the country.
Companies are free to engage in CNY transactions with the immediate effect. “SBP has already put in place the required regulatory framework which facilitates use of Chinese yuan in trade and investment transactions,” the bank said.
It also noted the “growing size of trade and investment” between Pakistan and China under the China-Pakistan Economic Corridor (CPEC) agreement. The use of yuan will further boost bilateral trade and “will yield long-term benefits for both [of] the countries,” the bank added.
While Islamabad and Beijing had already been considering ditching the US dollar for yuan in bilateral trade for some time, the announcement comes at a particularly low point in US-Pakistani relations. US President Donald Trump has vowed to halt US aid to the country, stating in a recent tweet that Washington has “foolishly given Pakistan more than $33 billion in aid over the last 15 years, and they have given us nothing but lies and deceit.” Trump has been repeatedly accusing Islamabad of providing a “safe haven to the terrorists,” referring to Taliban militants.
The US administration subsequently confirmed that it would further withhold $255 million of military aid to Pakistan. Islamabad has expressed “deep disappointment” over Washington’s decision, while describing Trump’s remarks as “completely incomprehensible.”
RELATED POSTS:
Mainstream Media Reports Truth: West No Match For Russian Military Hardware
Merkel Declares War On “Fake News” EU Brands Russia Today, Sputnik “Dangerous Propaganda”
China launches global yuan payment system
China’s Central Bank has started a global payment system which provides cross-border transactions in yuan. The China International Payment System (CIPS) intends to internationalize the yuan and challenge the US dollar's dominance.
Washington is pushing Kiev to military solution of Donbass conflict
The US is inciting Kiev to end the crisis in eastern Ukraine by force, said the Russian foreign minister citing US support of the recent Ukrainian law on the special self-governing status of Donbass, which Moscow says undermines the Minsk-2 deal.
The Imperatives Behind The New cold War
The ‘new Cold War,’ against Russia, is something of a misnomer, because it differs from the original version, against the U.S.S.R., in that it’s already a hot war, which started in Ukraine as being the key proxy-state for the American Government’s chief foreign-policy aim, of defeating Russia.
Fears for the future of the US dollar
Iran, oil and the US dollar
Obama and Kerry warmongering is about saving the dollar
Collapse of the petrodollar imminent
Obama goes head to head with Russia over the Petrodollar
India and Turkey latest sign - ups to dump the dollar club
Russia, Ukraine and the Petrodollar
So why does war seem so inevitable?
Holy City
Chasing Bubbles
