Renowned automobile manufacturer, Ghandhara Nissan Limited (GNL) begins taking payments in Chinese Yuan to import the trucks.
According to sources, Ghandhara Nissan imported trucks worth 3 million Chinese Yaun (around 53 million Pakistani Rupees) with the Chinese Bank. However, the transaction was performed with Bank of China Limited Pakistan (ICBC).
An official from Ghandhara Nissan revealed that the LC amount CNY3 million is established in Chinese Yuan (CNY). He further added that it was made in March 2018 through ICBC. He also said that it is the first CNY LC transaction between Ghandhara Nissan and ICBC. On the other side, it is not the 1st CNY trade transaction for GNL’s business. GNL’s official elaborated that use of Chinese Yuan as a trading currency is in an initial phase. He further added that it is much lower than the trade in dollars.
However, Chinese banks are much interested in the promotion of Chinese Yuan in different regions including Pakistan. On the other hand, State Bank of Pakistan (SBP) is also showing its support to the Chinese lenders to develop a local Yuan clearing mechanism and settlement in the country. China also invested over $55 billion dollars for the successful execution of China Pakistan Economic Corridor (CPEC) project.