ICBC appointed as RMB clearing bank to foster Sino-Pak cross-border
transactions
The Industrial and Commercial Bank of China (ICBC) in
Pakistan has inaugurated an RMB clearing bank to facilitate cross-border
transactions between Pakistani and Chinese businesses and financial
institutions, addressing the financing needs of both nations.
The grand opening ceremony, held in Islamabad, drew
officials, experts, and entrepreneurs from Pakistan and China. ICBC has been
officially designated as the RMB clearing bank in Pakistan by the People’s Bank
of China, as confirmed by ICBC.
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Under this initiative, ICBC will provide services for
clearing and settling RMB transactions, along with assisting in RMB trading,
borrowing, and lending transactions for participating banks in Pakistan.
During the event, Caretaker Minister for Finance, Revenue,
and Economic Affairs, Shamshad Akhtar, welcomed the establishment of RMB
clearing operations in Pakistan. She expressed hope that this initiative would
connect the Pakistani offshore and Chinese onshore RMB markets, facilitating
cross-border transactions in trade and investment.
Shamshad Akhtar emphasized the significance of Pakistan's
RMB clearing system, stating that it reflects China's commitment to support
Pakistan's RMB system development. She also highlighted that the RMB's growing
importance is evident as it now constitutes over 12 percent of the International
Monetary Fund’s Special Drawing Rights basket.
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Governor of the State Bank of Pakistan, Jameel Ahmad,
commented on the long-term benefits of establishing a local RMB clearing
system, strengthening the China-Pakistan relationship and Pakistan's economy and
banking sector. He assured continued policy and regulatory support from the
State Bank of Pakistan to enhance economic and financial ties with China.
Chinese Ambassador to Pakistan, Jiang Zaidong, noted the
importance of the RMB clearing bank in Pakistan, as it will provide financial
support for cooperation on the joint construction of the Belt and Road
Initiative (BRI). He emphasized China's readiness to collaborate with Pakistan
to build an upgraded version of the China-Pakistan Economic Corridor (CPEC) and
contribute to the high-quality construction of the BRI.
ICBC's Vice President, Zhang Weiwu, highlighted the clearing
bank's role in promoting financial cooperation and supporting the CPEC to
achieve mutual benefits and win-win cooperation between the two countries.
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The year 2023 marks the 10th anniversary of the Belt and
Road Initiative (BRI) and the China-Pakistan Economic Corridor (CPEC). The
progress of the BRI and the rapid advancement of the CPEC have elevated
economic and trade relations between China and Pakistan to new heights. This
has created a ripe environment for the growth of RMB-related business in the
Pakistani market.
Launched in 2013, the CPEC, a flagship project of the BRI,
links the Gwadar port in southwestern Pakistan with Kashgar in northwest
China’s Xinjiang Uygur Autonomous Region, focusing on energy, transport, and
industrial cooperation.
Source: Pakistan Observer