Tuesday, December 19, 2017

Another country appears ready to dump the dollar in bi-lateral trade with China

With China being within days or weeks of sticking a dagger into Petrodollar hegemony through the implementation of a new yuan-denominated oil contract, the likelihood or more and more countries willing to participate in yuan denominated trade also increases.

And according to sources on Dec. 19, the next economy that appears to be jumping on the bi-lateral trade bandwagon in using the yuan currency is that of Pakistan.

The government of Pakistan is considering a proposal to start using the Chinese yuan in trade with China, according to the Interior Minister Ahsan Iqbal, as quoted by Pakistan’s English-language daily Dawn. 
“We are examining the use of yuan instead of the US dollar for trade between the two countries,” the minister told the media after the official launch of the Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC). 
Bilateral trade between Pakistan and China was worth $13.8 billion in 2015 to 2016, a decade after the countries signed a free trade agreement. Pakistan will continue to use the rupee domestically, according to Iqbal. 
The LTP includes cooperation between the countries in energy, information network infrastructure, road and rail connections, trade and industrial parks, tourism, agriculture, and poverty alleviation. The plan will be implemented in three phases, the first ending in 2020, followed by another in 2025, with completion in 2030. – Russia Today


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