RMB internationalization has been steadily promoted, and cross-border RMB business has grown rapidly. In collaboration with the Pakistan China Center and the China-SCO Institute of Economic and Trade, the China SCO Local Economic and Trade Cooperation Demonstration Area (SCODA) holds a training course on Policy and Practice of RMB Cross-Border Settlement to help enterprises avoid exchange rate risks, reduce exchange costs, and expand an important strategic vehicle for opening up.
“Belt and Road Initiative, China-Pakistan Economic Corridor and RMB internationalization have brought valuable opportunities for Pakistan’s economic development, which have provided good platforms for RMB internationalization. The use of RMB will help reduce exchange risks and obtain high returns,” highlighted Ghulam Qadir, Pakistan’s Commercial Counsellor to China on the training course on RMB Cross-Border Settlement in Pakistan today.
The Counsellor added that China is Pakistan’s largest trading partner. The bilateral agreement between China and Pakistan on trade in the currencies of the two countries is noteworthy and the two countries have agreed to conduct bilateral trade transactions in their respective currencies. China’s central bank has signed a memorandum of cooperation with the State Bank of Pakistan to establish RMB clearing arrangements in Pakistan following the state visit of Prime Minister H.E. Shehbaz Sharif. These arrangements will help enterprises and financial institutions in the two countries use RMB for cross-border transactions, which will also further facilitate bilateral trade and investment.
“I hope more banks or financial institutions will bring more initiatives to Pakistan and inject more impetus to economic and trade development in Pakistan,” said the Counsellor.
Lin Changhua, Deputy Director of the SCODA Administrative Committee, stated that, “we look forward to taking this opportunity to enhance the understanding and application of the cross-border RMB payment system by financial institutions and import and export enterprises of the SCODA and the SCO countries to promote cooperation between banks and enterprises, and between SCO national banks and local banks, and financial cooperation between the SCODA and SCO countries.”
The representative from Cross-border Interbank Payment Clearing Co., Ltd presented their main functions and innovative products and business of RMB Cross-border Payment System; Ministry of Commerce, Pakistan explained Pakistan’s foreign exchange management policy, RMB usage and development plans for cross-border RMB in Pakistan; Bank of China shared related work on promoting the development of cross-border RMB business, typical successful cases, cross-border financial services measures and financial products in account opening, settlement, financing, etc; Enterprises from both countries also delivered speeches on the progress of cross-border RMB business requirements.
Approximately 40 financial institutions and more than 200 business representatives from Pakistan and Qingdao participated in the training both online and offline. The training set up a communication platform for financial institutions of the two countries, helped enterprises clarify the development plans and paths of RMB transactions in Pakistan, and provided them with ideas and schemes to use RMB as a settlement currency.
