China and Pakistan Set Up Offshore Yuan Clearing

What’s new: Pakistan became the third country in 2022 to establish a Chinese yuan clearing arrangement and the first country in South Asia to do so.

China’s central bank signed a cooperation memorandum with the central bank of Pakistan to establish a yuan clearing arrangement in the country, the People’s Bank of China (PBOC) said Wednesday.

The move will benefit enterprises and financial institutions in China and Pakistan, allowing them to use yuan for cross-border transactions and further promoting bilateral trade and investment, the PBOC said.