The State Bank of Pakistan said in an announcement that it will allow traders to use the yuan as a settlement currency in bilateral trades with China, with the aim of promoting trade growth between the two countries, Yicai.com reported.
Both public and private enterprises can choose to use the yuan in bilateral trade and investments, as the central bank has already enacted laws and regulations to promote its use.
Pakistani statistics show that the nation’s imports from China have jumped from US$12.1 billion to US$14.13 billion in 2017. Meanwhile, its exports to China have increased from US$1.5 billion to US$1.7 billion.
Some economists have said that using RMB as a settlement currency will ease China’s foreign exchange reserves.