In a significant move to strengthen economic ties and facilitate international trade, the State Bank of Pakistan (SBP) and the People’s Bank of China (PBC) have signed a Memorandum of Understanding (MoU) on the establishment of RMB (Chinese currency) clearing arrangements in Pakistan.
The MoU was signed by Jameel Ahmad, Governor of the State Bank of Pakistan, and Yi Gang, Governor of the People’s Bank of China, reaffirming both countries’ commitment to enhancing financial cooperation.
The introduction of the RMB clearing mechanism in Pakistan is expected to have far-reaching benefits. Chinese and Pakistani businesses, as well as financial institutions, will now be able to conduct more international transactions using the Chinese currency. This move is poised to facilitate smoother cross-border transactions, reduce currency exchange costs, and boost overall trade and investment activities between the two nations.
By providing a more convenient and efficient payment system, the RMB clearing arrangements aim to further encourage bilateral investment and trade, reinforcing the already strong economic partnership between Pakistan and China.
With this MoU in place, both countries are poised to capitalize on the opportunities presented by the RMB clearing mechanism, fostering a more robust and prosperous trade environment and opening new avenues for mutual growth and development.
