Day after Trump tweet, Pakistan dumps the Dollar for Yuan
Two days after the Donald Trump tweet, Pakistan has issued a directive to dump the Dollar for the Yuan. The Central Bank of Pakistan gave the green signal to use the Chinese currency for bi-lateral trade with China.
This would mean that the Pakistan and China would be able to replace the US Dollar for transactions in the China Pakistan Economic Corridor.
A press release from the State Bank of Pakistan said, "Chinese Yuan (CNY) is an approved foreign currency for denominating foreign currency transactions in Pakistan."
"SBP has already put in place the required regulatory framework which facilitates use of CNY in trade and investment transactions such as opening of L/Cs and availing financing facilities in CNY. In terms of regulations in Pakistan, CNY is at par with other international currencies such as USD, Euro and JPY, etc," it said.
Beijing has committed to investing around $60 billion in the country by 2030 under a long-term plan of development cooperation with Islamabad. The CPEC is a flagship project of China's Belt and Road Initiative.