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KARACHI: People’s Bank of China (PBC) and the State Bank of Pakistan (SBP) on Friday signed a landmark bilateral currency swap arrangement for a three-year period to boost bilateral trade. D U Jinfu, Deputy Governor PBC, and Yaseen Anwar, Governor State Bank, signed an agreement to this effect at a simple ceremony held in Islamabad. “The bilateral CSA has been concluded in Chinese Yuan CNY 10 billion and Rs140 billion for the purpose of promoting bilateral trade and investment and strengthening financial cooperation”, a statement issued by the State Bank said. “The currency swap would expire in three years, but could be extended with mutual consent”, it added.
The State Bank said that it is expected that bi-lateral trade and investment will grow between Pakistan and China as a result of this agreement, further augmenting the economic ties of the two countries. “This agreement will make a significant contribution in further strengthening the close and special relationship between the two countries.” Announcement of the currency swap agreement between the two central banks will give positive signal to the market on the availability of liquidity of the other country’s currency on the onshore market, the State Bank said. “As a result it will promote bi-lateral trade denominated in Chinese Yuan and Pakistan rupee.”
The landmark agreement was signed on the occasion of visit by a high-powered delegation from China headed by Di Bingguo, China’s state councillor who outranks Chinese foreign minister Yang Jiechi, to Islamabad from Friday. Analysts said that the agreement would prove beneficial for robust trade and commerce between the two countries. Reportedly, the volume of bilateral trade reached $5.789 billion in 2010-11 but the import from China was significantly dominant. The volume of import from China rose to $4.144 billion while export to China remained at $1.645 billion during the period. Pakistani exporters have said that China has vast scope for Pakistani products being the biggest market of the world.
The State Bank said that it is expected that bi-lateral trade and investment will grow between Pakistan and China as a result of this agreement, further augmenting the economic ties of the two countries. “This agreement will make a significant contribution in further strengthening the close and special relationship between the two countries.” Announcement of the currency swap agreement between the two central banks will give positive signal to the market on the availability of liquidity of the other country’s currency on the onshore market, the State Bank said. “As a result it will promote bi-lateral trade denominated in Chinese Yuan and Pakistan rupee.”
The landmark agreement was signed on the occasion of visit by a high-powered delegation from China headed by Di Bingguo, China’s state councillor who outranks Chinese foreign minister Yang Jiechi, to Islamabad from Friday. Analysts said that the agreement would prove beneficial for robust trade and commerce between the two countries. Reportedly, the volume of bilateral trade reached $5.789 billion in 2010-11 but the import from China was significantly dominant. The volume of import from China rose to $4.144 billion while export to China remained at $1.645 billion during the period. Pakistani exporters have said that China has vast scope for Pakistani products being the biggest market of the world.
(The News)
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