Saturday, 24 December 2011

China announces currency swap with Pakistan and invest $700m

Pakistan and China on Friday signed a currency swap arrangement to promote bilateral trade and investment and strengthen financial cooperation.
The Chinese central bank said it agreed on Friday with its Pakistani counterpart to swap 10 billion yuan (S$2.04 billion) for 140 billion Pakistani rupees (S$2.03 billion). It said the money would promote investment and trade
This is the second currency swap agreement that the government has signed with any country. Earlier, Pakistan and Turkey inked a similar arrangement with an option to trade in each other’s currencies equivalent to $1 billion.
The currency swap agreement will give a positive signal to the market on availability of the other country’s currency on the onshore market, said the central bank, adding as a result it will promote bilateral trade denominated in Chinese yuan and Pakistani rupee.
Chinese investors to invest $700m in Pakistan
Pakistan and China have signed six agreements under which different Chinese investors would be investing $700 million in Pakistan, Geo News reported

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