ISLAMABAD: Pakistan will allow the Chinese yuan to be used for imports, exports and financing transactions for bilateral trade and investment activities, in a move economists said Wednesday would simplify a massive Chinese investment project.
Both public and private sector enterprises may use the yuan for bilateral trade and investment, the central State Bank of Pakistan said in a statement issued Tuesday, reports AFP."As per current foreign exchange regulations, Chinese Yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan," it said.
"In terms of regulations in Pakistan, CNY is at par with other international currencies such as USD, Euro and JPY," it added. The bank said that in light of a massive Chinese infrastructure project in Pakistan, the move would "yield long-term benefits for both the countries".
The China-Pakistan Economic Corridor (CPEC), a $54 billion project launched in 2013 linking western China to the Indian Ocean via Pakistan, has been hailed as a "game changer" by Pakistani officials.