Pakistan, China ink yuan clearing deal

The central banks of Pakistan and China signed a memorandum of cooperation on yuan clearing in Pakistan, the Chinese central bank said in a statement on Wednesday, without giving more details. The arrangement could pave the way for an alternative payment option for Pakistan, boosting yuan usage for cross-border transactions among Chinese and Pakistani enterprises and financial institutions. The development is being seen in the financial sector as something that might also help Pakistan buy discounted Russian oil, as the Chinese currency was acceptable to Russia. Pakistan is currently making oil payments in US dollars. In early October, a US State Department spokesperson told Dawn that Pakistan could be one of the beneficiaries of a US decision to “keep Russian oil available” in the market for lower and middle-income countries.