Pakistan State Bank allows use of Chinese currency Yuan for bilateral trade

Pakistan has allowed Chinese currency Yuan for exports and financing transactions.In a notification Pakistan external affairs ministry said that both public and private sector enterprises of Pakistan and China are free to choose Yuan for bilateral Trade & Investment activities.

As per current foreign exchange regulations, Chinese Yuan is an approved foreign currency for denominating foreign currency transactions in



Pakistan.It said, that after signing Currency Swap Agreement with People’s Bank of China, Pakistan's state bank had taken a series of steps to promote use of Yuan in Pakistan for bilateral trade and investment with China. 

Pakistan banking regulator has allowed the transactions in Yuan just a day after the US President Donald Trump said that no more aid will be given to Pakistan by his country.