Pakistan is one of the leading countries to use RMB for international trade settlement.
It bodes well for Pakistan to join the RMB settlement service as it encourages industrial transfer by assuaging the concerns of Chinese investors on financial losses due to the violently fluctuating exchange rate in Pakistan.
As more progress is yet to unfold, RMB-PKR de-dollarisation is expected to play a catalysing role in Pakistan-China trade.
According to Guan Tao, a chief economist of a leading Chinese securities trader, the overall gloomy outlook on global economy this year and the international confidence in China’s performance are enhancing the attractiveness of RMB assets.
Meanwhile, against the backdrop of volatile US dollar policies, more countries are diversifying their currency portfolio to hedge against financial risks.
RMB, as the fifth largest currency for international payments and foreign exchange transactions, is eyeing a boom in its international usage.
In recent years, China has been ramping up support for RMB clearing and settlement in its foreign trade, especially with Belt and Road countries according to CEN.
This week Brazil and China reached a deal to trade in their own currencies, ditching the US dollar as an intermediary.
