KARACHI: The State Bank of Pakistan (SBP) and Peoples Bank of China (PBoC) signed a Memorandum of Understanding (MoU) on establishing RMB (Chinese currency) clearing arrangements in Pakistan.

According to the SBP, the MoU was signed by SBP Governor Jameel Ahmad and PBoC Governor Yi Gang in the recent China visit of Prime Minister Mian Shahbaz Sharif. State Bank Governor Jameel Ahmed is also part of the Prime Minister delegation.

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The SBP said that the establishment of the RMB clearing arrangements in Pakistan will further boost usage of RMB for cross-border transactions among Chinese and Pakistani enterprises and financial institutions.

“This will also promote bilateral trade and investment between the two countries,” the SBP added.

Copyright Business Recorder, 2022