China and PakistanRenew Currency Swap Agreement Boosting Bilateral Ties

作者智能小编

10 月 17, 2024 #China, #Pakistan, #中新网-要闻

China and Pakistan Renew Bilateral Currency Swap Agreement

Beijing, October 16,2024 – The People’s Bank of China (PBOC) and theState Bank of Pakistan (SBP) have renewed their bilateral currency swap agreement, according to a statement released by the PBOC on its website. The agreement,approved by the State Council, extends the swap arrangement for another three years, with a total swap size of 300 billion yuan (approximately $42 billion) or 1,180 billion Pakistani rupees. The agreement can be extended upon mutual consent.

This renewed agreement signifies the continued strengthening of economic and financial cooperation between China and Pakistan. The currency swap arrangement provides a crucial financial safety net for bothcountries, facilitating bilateral trade and investment by reducing exchange rate risks. It also helps to enhance financial stability and promote regional economic integration.

The original agreement, signed in 2012, was instrumental in supporting Pakistan’s economic recovery following theglobal financial crisis. The renewed agreement is expected to further strengthen the economic ties between the two countries, particularly in the context of the China-Pakistan Economic Corridor (CPEC), a flagship project of China’s Belt and Road Initiative.

The CPEC, a massive infrastructure development project, has significantly boosted economic activity in Pakistan, creating new jobs and opportunities. The currency swap agreement provides a stable financial environment for the successful implementation of CPEC projects.

The renewed agreement also reflects the growing importance of local currency settlements in international trade. By using their own currencies for transactions, China and Pakistan can reduce their reliance on the US dollar, promoting greaterfinancial independence and reducing vulnerability to external shocks.

The agreement is a testament to the strong and enduring partnership between China and Pakistan. It is expected to further deepen economic cooperation and contribute to regional stability and prosperity.

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