Dollar likely to get replaced by Yuan in Pakistan-China trade

Islamabad is likely to replace the American dollar with the Chinese Yuan for bilateral trade between the two sides after Pakistan's Minister for Planning and Development Ahsan Iqbal said the government was considering a proposal in this regard.

Responding to a question after the formal launch of Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC) 2017-30 signed by the two sides on November 21, Iqbal said China has desired that bilateral trade should take place in its currency known as Renminbi (RMB) or Yuan.

"We are examining the use of RMB instead of the US dollar for trade between the two countries," Dawn quoted Pakistan's English-language daily newspaper Dawn quoted Iqbal as saying.

He added that the use of RMB was not against the interest of Pakistan, rather it would benefit the country.

The 26-page LTP document briefly covers broad areas of cooperation where the two sides have to contribute to each other in three phases which include connectivity, energy, trade and industrial parks, agricultural development and poverty alleviation, tourism, people's livelihood and exchange programmes and financial cooperation.

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

Newly-appointed Chinese Ambassador Yao Jing and officials of the provincial governments also attended the launching ceremony.