ICBC unveils RMB policies to strengthen China, Pakistan economic ties

August 29, 2023 (MLN): In a noteworthy development highlighting the booming economic relationship between China and Pakistan, experts from the Industrial and Commercial Bank of China (ICBC) on Tuesday introduced comprehensive policies for cross-border RMB business, products and services, on-shore and off-shore markets, as well as ICBC’s strengths in RMB clearing and market making.

These policies were proposed during a seminar titled "RMB Prospects & Applications Seminar to facilitate trade between China and Pakistan.”

It is important to note that this year marks the 10th anniversary of the Belt and Road Initiative (BRI) proposed by President Xi Jinping and also the 10th anniversary of the launch of the China-Pakistan Economic Corridor (CPEC).  

"The implementation of the Belt-and-Road Initiative and the rapid advancement of the China-Pakistan Economic Corridor (CPEC) have propelled bilateral economic and trade relations between China and Pakistan into new realms of collaboration, said a press release issued today.

Consequently, the potential for the growth of RMB-related business in the Pakistani market is at an all-time high, it added.

 The seminar was conducted with the prime objective of promoting awareness and understanding within the banking and business sectors of Pakistan about the key factors involved in trading in the Chinese currency (RMB) with the Chinese banking system.

The participants appreciated that increasing the use of RMB products will facilitate trade and investment with Chinese counterparties as it is relatively stable in value, convenient in clearing, and low in cost. RMB usage can also decrease the exchange rate risk among investment and trade activities.

The ICBC Karachi Branch, established in May 2011, is a leading foreign bank operating in branch mode in Pakistan. It is the RMB clearing bank designated by the People’s Bank of China and is the leading RMB market maker. Since its establishment, the ICBC Karachi Branch has been committed to setting up a good relationship with its local peers.

By leveraging the ICBC Group’s service network and business advantages, the ICBC Karachi Branch provides high-quality and comprehensive financial services for Chinese and Pakistani companies and facilitates local economic and social development.

As the bank with the largest market capitalization, ICBC has set up more than 400 off-shore units in 45 countries and regions. It has taken advantage.

As a global banking icon boasting a presence across 45 countries and regions, ICBC has set a precedent with its dedication to promoting the internationalization of RMB business. This initiative aligns seamlessly with its overarching goal of boosting bilateral trade and investment between China and its partnering nations.

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