ISLAMABAD, Pakistan, May 6 (NNNXINHUA) The Bank of China has officially launched its services in Pakistan, for clearing and settlement mechanism of Chinese yuan (CNY), for bilateral trade, investment activities, imports, exports and financing transactions, a statement said on Saturday.
The Bank of China (BOC) had already commenced operations through its first branch in Pakistan's southern port city of Karachi, in Nov last year.
Earlier in Jan, the central bank of Pakistan declared Chinese currency, renminbi or yuan, as an approved foreign currency for denominating foreign currency transactions in Pakistan, declaring that, the Chinese yuan is at par with other international currencies, such as the U.S. dollar, euro and Japanese yen, and other currencies.
The launching ceremony was held in Pakistan's southern port city of Karachi, on Friday, which was attended by officials, several chiefs and executives from the banking industry and corporate sector.
Li Tao, country head and CEO of BOC Pakistan Operations, highlighted global recognition, importance and increasing utilisation of the yuan and said that, the yuan settlement amount of China's crossborder trade exceeded 4.36 trillion yuan (0.686 trillion usd), last year.
According to the statement, the BOC serves as yuan clearing bank in France, Australia, Malaysia, Hungary, South Africa, Zambia, the United States and in several other places, occupying 11 seats in 24 clearing banks designated by the People's Bank of China.
Wang Yu, Counsel General of the Chinese Consulate in Karachi, said, the BOC's operations for yuan will build another financial artery in China's Belt and Road Initiative, as well as, the ChinaPakistan Economic Corridor.
Pakistani bankers hoped that yuan clearing and settlement mechanism will boost transactions, including trade settlement and direct investment with the increasing demand for yuan from enterprises and financial institutions in the two countries.
Deputy Governor of the State Bank of Pakistan, Jamil Ahmad, hoped that the BOC can provide liquidity in the interbank market and offer different yuandenominated financial products, to cater to the need of the financial industry and the business community in Pakistan.
Hussain Lawai, head of the Institute of Bankers Pakistan, believed that the launching of the yuan clearing and settlement mechanism can definitely help to enhance the crossborder trade between the two countries and consequently benefit the enterprises and banks of either side.
Muneer Kamal, chairman of the board of Pakistan Stock Exchange Limited and director of Engro, called on Pakistani financial institutions and corporate, to grab the chance of yuan and further improve the development of the two countries
Source: NAM NEWS NETWORK