China, Pakistan to Use Yuan in Trade

Pakistan is hoping to boost trade and economic ties with China by trading with the country in yuan, the State Bank of Pakistan in Karachi has announced. Imports, exports and financial transactions between the two countries can now be denominated in the yuan, it said in a press release, South China Morning Post reported. Regulatory framework such as opening of letters of credit, clearing of transactions and financing facility in the yuan has been put in place, it added. It said that the move has put the yuan on a par with other international currencies such as the US dollar, euro and Japanese yen. China has extended a US$56 billion financing facility to the China-Pakistan Economic Corridor, which will link the southwestern Pakistani port city of Gwadar and the Chinese region of Xinjiang.