China welcomes use of Yuan for bilateral trade, investment activities

BEIJING: China Thursday welcomed the State Bank of Pakistan for allowing use of the Chinese Yuan for bilateral trade and investment activities and said it would create a sound financial environment for bilateral economic, trade and investment cooperation between the two countries.

“We welcome this move and we believe it will create a sound financial environment for bilateral economic, trade and investment cooperation and the construction of China-Pakistan Economic Corridor (CPEC),” Spokesperson of Chinese Foreign Ministry, Geng Shuang said during his regular briefing held here.

He said since China and Pakistan signed a bilateral currency swap agreement in 2011, bilateral monetary cooperation has been deepening between the two sides.

At present, various forms of trade and investment cooperation between China and Pakistan have developed in depth, he added.

The spokesperson said the Chinese side encouraged market players in both countries to use domestic currency settlement in bilateral trade and investment and welcomed Pakistan-related initiatives.

The State Bank of Pakistan has recently allowed the Pakistani and Chinese public and private enterprises to use the Chinese Yuan for the bilateral trade and investment activities.