The Hush Post: Transaction between Pakistan and China will happen through Chinese currency Yuan and not the US dollar. The State Bank of Pakistan has accorded the Yuan currency of Pakistan the status which would be equal to other international currencies such as US dollar, Euro, etc. Experts say, this is the typical ant getting back at the elephant referring to the Pakistan response to Donald Trump’s action against Pakistan of stopping all aid.
Ahsan Iqbal, Minister for Planning and Development has said that the Pakistan government is looking into a proposal to replace the US dollar with the Chinese Yuan for any kind of transaction between China and Pakistan.
SBP has already put in place the required regulatory framework which facilitates use of Chinese Yuan currency in trade and investment transactions such as opening of L/Cs and availing financing facilities in CNY. With ties with the US reaching a new low and its funds seemingly being threatened, Pakistan is warming up to China.
The move has taken place after US president Donald Trump’s tweet stopping all aid to Pakistan and calling it a nation which has involved in deceit in the past.