Local currencies to replace US dollar in Pakistan, China trade

Islamabad, Nov 5, IRNA – In a move to reduce influence of US dollar on Pakistan, China trade both countries have agreed to do the business in local currencies. Pakistan’s Standard Chartered bank has announced that hurdles to trade with China in Pakistani rupee and Chinese Yuan have been removed. Earlier two countries were trading in dollars, which caused hurdles in the way of banking transactions for traders. The two nations signed a currency swap agreement a couple of years ago. Standard Chartered Pakistan Chief Executive Officer Shazad Dada said they had a very fruitful meeting with the State Bank of Pakistan and the central bankers pledged to facilitate trade in the two currencies. Most banks in the two nations have yet to set up their branches in each other’s countries. However, Standard Chartered has branches in both the countries. China is now in agreement with eight countries to conduct trade in their local currencies. These include Pakistan, Hong Kong, the UAE and Qatar. Other regional countries are also considering trading in local currencies instead of US dollars. More than 60% of Standard Chartered’s market across Africa, Asia and the Middle East stand to benefit from the initiative. Twenty-five of the group’s 72 markets are in Africa and the Middle East. The initiative could facilitate financing for Pakistan’s key infrastructure projects, while encouraging cross-border economic and trade partnerships, not only with China, but other countries also. 1378/IRNA