Pakistan Plans Replacing Dollar With Yuan In Trade With China

Tyler Durden's picture

Pakistan is considering replacing the U.S. dollar with the Chinese yuan for bilateral trade between Pakistan and China, Pakistan's Minister for Planning and Development Ahsan Iqbal said according to Dawn Online and The Economic Times. Interior Minister Iqbal, who has been central to the planning and implementation of China-Pakistan economic ties, was reported discussing the proposal after unveiling a long-term economic development cooperation plan for the two countries, Reuters added.

Iqbal spoke to journalists after the formal launch of Long Term Plan (LTP) for the China-Pakistan Economic Corridor (CPEC) signed by the two sides on November 21, Dawn online reported on Tuesday.  The CPEC is a flagship project of China's Belt and Road initiative. The 3,000 km, over $50 billion corridor stretches from Kashgar in western China to Gwadar port in Pakistan on the Arabian sea. 

Asked if the Chinese currency could be allowed for use in Pakistan, the minister said the Pakistani currency would be used within the country but China desired that bilateral trade should take place in yuan instead of dollars, in yet another push to de-dollarize what China considers its sphere of influence.

"We are examining the use of yuan instead of the US dollar for trade between the two countries," Iqbal said, adding that the use of yuan was not against the interest of Pakistan. Rather, it would "benefit" Pakistan.

It would also show that world that when it comes to Asia, the "superpower" of significance is no longer the US. And so, as China's influence grows, the long-term plan highlighted key cooperation areas between the neighboring states including road and rail connections, information network infrastructure, energy, trade and industrial parks, agriculture, poverty alleviation and tourism.

The CPEC plan marks the first time the two countries have said how long they plan to work together on the project, taking the economic partnership to at least 2030. China has already committed to investing $57 billion in Pakistan to finance CPEC as part of Beijing’s “Belt and Road” initiative to build a new Silk Road of land and maritime trade routes across more than 60 countries in Asia, Europe and Africa.

Addressing the launching ceremony Chinese Ambassdor to Pakistan Yao Jing said the long term plan would expand the scope of cooperation in various new areas, including cooperation in social sectors along with economic fields. “CPEC was a national plan approved by the both the Chinese and Pakistan government.” It will effectively match relevant national plans of China as well as Pakistan Vision 2025."

The two nations also agreed to establish and improve cross-border credit system and financial services, strengthen currency swap arrangements as well as establish a bilateral payment and settlement system.... in yuan that is, not dollars.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
DEMIZEN's picture

that pretty much means that Chinese managed to bypass India.

IH8OBAMA's picture

We've been giving the Pakis too much aid anyway.  Time to cut them off cold turkey.

 

Justin Case's picture

The real leak is Israel. The price of buying friends to further the empire's loyalty. Now back to the hard working mericans and their pensions.

knukles's picture

Gooooooold is a many splendid thing .....

Next you all wait until the purveyors of Hip-Hop culture figure out the Dumbocraps been havin' them as vote slaves in the ghettos, things gonna get real interestin'

bobcatz's picture

Maybe we can get Israhell to BUY some stuff from the US in U$.

Oh wait, Israhell doesn't buy shit from the US. They just take and take and take. Talk about WELFARE. http://wp.me/p4OZ4v-7x

RationalExuberance's picture

America needs a decent rival like the USSR back in the days, and this time China. 

J S Bach's picture

Yes... the slow and painful process of admitting to the dollars' decline in progress.

What to do?  By Bitcoin? Sell dollars? By bonds?  Sell bonds?

How the usurers must be laughing in their secretive hallowed halls right now.

SHsparx's picture

Expecting an invasion of ISIS into Pakistan any minute now.

07564111's picture

They'll try to kill Imran before they go that route.

Nexus789's picture

China is more than just a rival. During the time of the USSR the US still had much of its industrial capacity. This is not the case now as the US continues to deindustrialise and its economy declines in 'competitiveness'. 

BennyBoy's picture

"Oh wait, Israhell doesn't buy shit from the US. They just take and take and take. Talk about WELFARE. "

 

WELFARE state.

WillyGroper's picture

better pay attention folks...national emergency has been declared.

she's goin down.

 

Executive Order Blocking the Property of Persons Involved in Serious Human Rights Abuse or Corruption
https://www.whitehouse.gov/presidential-actions/executive-order-blocki

ng-property-persons-involved-serious-human-rights-abuse-corruption/

Letter from the President to the Congress of the United States
https://www.whitehouse.gov/briefings-statements/text-letter-president-co...

Issuance of Global Magnitsky Executive Order; Global Magnitsky Designations
https://www.treasury.gov/resource-center/sanctions/OFAC-Enforcement/Page...

Dubaibanker's picture

MAJOR UNCERTAINTY ABOUT TO BEGIN FOR THE USD- China is about to give a 'gift' to the entire western world around Christmas 2017!!

China started gold trading in yuan in June 2017. 

Now, perhaps before Christmas or latest in January 2018, China is going drop a BOMBSHELL.

OIL WILL START TRADING IN A CURRENCY WHICH IS NOT US DOLLAR FOR THE FIRST TIME IN OVER 40 YEARS!

Once this occurs, the global financial system anchored to the US dollar will get a major push in favour of China and it’s currency.

US dollar will see massive moves suddenly once this gets operational!

Russia, Iran and others who have sanctions will have an option and will be able to bypass all US sanctions.

Once Saudi decides to accept yuan, that will be the end of US dollar, but that will only occur sometime in 2018 because Saudi is desperate for money and needs China more than it needs America. But, at the moment, Trump has given 6-12 months worth of lifeline to Saudi since Nov 2016.

Large oil importing countries like China and India are shifting their buying from Saudi and moving towards Iraq (for India) and towards Russia, Iran, Venezuela and Angola (for China).

How will USA react to this move remans to be the seen and is still an unknown! (War with North Korea, random attack on some country, cancellation of Iran deal, further sanctions on Russia etc are some of the options it may use).

China May Launch Yuan-Denominated Oil Futures in Shanghai by 2018

https://sputniknews.com/business/201712201060169846-china-yuan-oil-futures/

In addition, Pakistan is also about to move into Yuan instead of US Dollar.

Pakistan considers dumping dollar for yuan in trade with China

https://www.rt.com/business/413608-pakistan-chinese-yuan-bilateral-trade/

China plans to break petrodollar stranglehold

http://www.atimes.com/article/china-plans-break-petrodollar-stranglehold/

 

Pliskin's picture

Yeh, now you can give more U.S. taxpayers money to your buddies in Israel!

Yippeeeeee!

Bibi loves ya baby!

ebworthen's picture

Yes, good riddance to the Pakis.

China won't be giving money for nothing.

P.L.A. will infiltrate and enforce China's will faster than a fly on shit.

Just look at how China is moving into Africa and prepping for conquest.

Justin Case's picture

China won't be giving money for nothing.

Only a Gov't that doesn't give a shit about it's people gives their money away and tells them they are asking for too much now that they want their pension contributions paid out.

Rock On Roger's picture

Conquest by commerce is a lot easier than conquest by bombs.

dirty fingernails's picture

Doesn't seem to have worked too well in Vietnam, Afghanistan,  Itaq, Syria, Libya, etc.

Nexus789's picture

Much more effective as quite clearly you don't even understand the 'soft war' taking place which revolves around technology that US and of the West is losing big time. While their living standards will continue to rise those of the US will stagnate and fall. 

I am Groot's picture

Cut the billions in welfare to them off and bomb the living fuck out of them. They have been harboring and arming terrorists for years. They are right up there with Iran on the asshole scale, which is an 11 on a scale of 1 to 10.

Pliskin's picture

Agreed, they are fucking arseholes, they've been arming and funding ISIS, Al-Qaeida, the Talban, Al-Nusra etc for fucking years, they deserve to have the living shit bombed out of them, death to the lot of 'em I say...oh wait, you said Iran..oh, I thought you were on about somebody else, sorry!

 

HRClinton's picture

I agree. Let's stop sending them Dollars, and see how they like it if we send them Yuans.

Rjh's picture

We can't trust the dirty, shit-eating Pakistanis. Be a shame if nukes dropped on all their major cities.

The only good muslim is a dead one. Men, women, and children, kill them all.

Justin Case's picture

Another USD hostage breaks free.

RationalExuberance's picture

Quick everyone, short the USD!!

gougeonit's picture

India will come back to it's previous position, as Modi days are numbered.

2018  is going to be a very interesting and scary year.

On a side note Two Ukrainian tank convoys were witnessed moving up to front lines towards Donbass today.

Happy Holidays

misnomer00's picture

Modi days are numbered you say? Have you looked at gujarat and himachal pradesh state elections results this week?

Nexus789's picture

They won't last long. They will end up as target practice. 

east of eden's picture

When are the US led Ukes going to realize that fighting Russians in a winter war is a fool's gambit?

troubadourcapital's picture

There goes the petrodollar. Soon to be replaced by the petroyuan

Offthebeach's picture

Why do the thieving Pakistanis have to "plan" with the thieving Chinese to use Yuan? Just do it, or not.  But, I suppose the buying off if the Paki elites, that will instantly, convert their trade profits to dollars, euros ....takes time.

 

halcyon's picture

It's all part of the new Silk Road. That's why USA wants to have a stranglehold on the Middle East and the Stans as well.

But fear not, Chinesee cut better deals: US says "do as we say or we kill you", Chinese say "Work with us and we build you roads, hospitals, housing, etc and try make sure US doesn't bomb you".

Who do you think they are going to go with?

US would do much better, if it cut its own military budget in half and gave it away as crony capitalistic developpment projects to those countries.

But no, military gung-ho over-extension it is and down you go, silly asses.

No amount of missiles, air craft carriers or spy satellites is going to stop that.

 

DaBears's picture

With $1.6 billion export to China, watch out, death of USD for sure this time!!! LAMFAO

https://globaledge.msu.edu/countries/pakistan/tradestats

Yen Cross's picture

 Pakistan is rich in resources. [good luck mining them]

 Here's the deal.  Hardball via popular vote, with no backing<

Pliskin's picture

But, but, but...beautiful chocolate cake?????

VWAndy's picture

 Thats a good way to get bombed.

east of eden's picture

'You', are going to 'bomb' a nuclear power, with people that are so easily led to violence that they make 'mericans look like pussies?

I don't think so.

Yen Cross's picture

 What really sickens/perturbs> me, is the graft [$usd] that could have been utilized for the right reasons.

 The Bushes and Clintonites have abused the populous/ The Clintons are just plain STUPID!

LetThemEatRand's picture

Fucking A Yes.   I often think about what the US could be like if we hadn't mortgaged the farm to the bankers.  Oh well, time to load up the wagon and see what we can find out West in Cali-forn-ia.

dirty fingernails's picture

It's fruatrating, isn't it? The US had it all, right in its hand and pissed it all away for short term profit/greed and dreams of an Eternal Empire.

Nexus789's picture

The squandering of treasury goes back to the end of WW2. Trillions wasted on wars, spying, useless weapons, etc. Could have rebuilt the economy a couple of times over and blcked the rise of China. 

desertboy's picture

Pakistan milked its US connections dry.  Time to move on.

Omega_Man's picture

yankee dollar is toast, even the pakis don't want it 

Yen Cross's picture

You're 100% correct.

 Would you like to discuss why?

 Perhaps we can discuss how that pertains to your corner of this closed ecosystem?

J bones's picture

I would love to discuss more about it. I want to know you insight.