AIRLINK 63.43 Increased By ▲ 0.23 (0.36%)
BOP 5.46 Increased By ▲ 0.06 (1.11%)
CNERGY 4.68 Increased By ▲ 0.11 (2.41%)
DFML 19.02 Decreased By ▼ -0.71 (-3.6%)
DGKC 70.29 Increased By ▲ 1.29 (1.87%)
FCCL 19.12 Increased By ▲ 0.87 (4.77%)
FFBL 30.86 Increased By ▲ 1.47 (5%)
FFL 9.58 Increased By ▲ 0.27 (2.9%)
GGL 10.16 No Change ▼ 0.00 (0%)
HBL 109.20 Decreased By ▼ -0.86 (-0.78%)
HUBC 127.70 Increased By ▲ 1.69 (1.34%)
HUMNL 6.85 Increased By ▲ 0.12 (1.78%)
KEL 4.39 Decreased By ▼ -0.08 (-1.79%)
KOSM 4.43 Decreased By ▼ -0.02 (-0.45%)
MLCF 37.39 Increased By ▲ 0.79 (2.16%)
OGDC 128.50 Increased By ▲ 0.20 (0.16%)
PAEL 22.80 Decreased By ▼ -0.39 (-1.68%)
PIAA 26.50 Increased By ▲ 0.30 (1.15%)
PIBTL 6.19 Increased By ▲ 0.19 (3.17%)
PPL 112.52 Decreased By ▼ -0.28 (-0.25%)
PRL 26.85 Decreased By ▼ -0.30 (-1.1%)
PTC 16.75 Decreased By ▼ -0.34 (-1.99%)
SEARL 60.72 Decreased By ▼ -1.37 (-2.21%)
SNGP 65.35 Increased By ▲ 1.40 (2.19%)
SSGC 11.05 Increased By ▲ 0.02 (0.18%)
TELE 9.10 Decreased By ▼ -0.13 (-1.41%)
TPLP 11.28 Increased By ▲ 0.28 (2.55%)
TRG 69.85 Decreased By ▼ -1.10 (-1.55%)
UNITY 23.65 Decreased By ▼ -0.30 (-1.25%)
WTL 1.31 Decreased By ▼ -0.07 (-5.07%)
BR100 7,280 Increased By 64.2 (0.89%)
BR30 23,637 Increased By 105.1 (0.45%)
KSE100 70,315 Increased By 694.7 (1%)
KSE30 23,132 Increased By 221.5 (0.97%)

ISLAMABAD: Pakistan’s trade settlement in Chinese RMB has increased by 600 percent, ie, from 2 percent in 2018 to over 14 percent in 2023, well-informed sources in the Commerce Ministry told Business Recorder.

The State Bank of Pakistan (SBP) recently informed the Apex Committee of the Special Investment Facilitation Council (SIFC) that the necessary regulatory framework for the settlement of trade in RMB is in place. The SBP has designated three banks, ie, ICBC, BoC and SCB to establish RMB settlement and the clearing setup.

People’s Bank of China (PBC) and SBP signed a cooperation Memorandum of Understanding (MoU). Subsequently, PBC authorized ICBC to act as RMB clearing bank in Pakistan. Resultantly, there has been a noticeable increase in trade settled in RMB - from 2 percent in 2018 to more than 14 percent in 2023.

ICBC Karachi hosts ‘RMB Clearing Bank Grand Opening Ceremony’ in Islamabad

According to the State Bank, the development on establishment of a regulatory framework will be communicated to importers/exporters and other interested investors and an update will be presented in the next EC.

The Council was also informed that SBP has put in place a regulatory framework for the facilitation of banks to carry out settlements through the Asian Clearing Union (ACU) mechanism, which allows settlement of trade in three currencies (dollar, Euro, and JPY). Pakistan is an active number of ACUs with a total trade during Jan-Oct 2023 of $ 509 million.

The AC of the SIFC has directed Governor SBP to communicate development on the establishment of a regulatory framework for ACU to concerned importers/exporters and investors and an update be presented in the next EC.

The meeting was also informed that cash over the counter facility in already is place (was never suspended) to facilitate exports to Afghanistan, subject to submission of the Customs’ declaration to ensure that foreign currency carried by Afghani importers comes from across the border of Afghanistan.

The Governor State bank of Pakistan has been directed to provide a progress update on SBP’s engagement with National Bank of Pakistan to utilize its branches/booths at border crossing points to collect foreign currency cash and present it in the next EC.

Copyright Business Recorder, 2024

Comments

Comments are closed.