pk-china-user “With the introduction of the new financial arrangement allowing the direct conversion of RMB into PKR, Chinese investors can save up to 500,000 Pakistani rupees on every transaction worth 10 million rupees,” an official of Hangeng Trade Company in Gwadar said.
He further explained that under the previous financial system, Chinese traders and investors were required to first convert RMB into US dollars before converting them into Pakistani rupees. Due to fluctuations in the value of the US dollar, they often faced losses resulting from exchange rate variations.
The development follows a visit to Gwadar this week by officials from ICBC, senior representatives of the Chinese Consulate in Karachi, and officials from the Bank of China to review the progress of CPEC projects.
Under the Memorandum of Cooperation between the People’s Bank of China and the National Bank of Pakistan, the People’s Bank of China has authorized the Karachi branch of the Industrial and Commercial Bank of China (ICBC) to serve as Pakistan’s RMB clearing bank. The ICBC will also undertake supervisory and regulatory responsibilities.
