It has been highlighted in a statement recently made by the central bank of China that the central bank of both countries (Pakistan and China) have signed a memorandum of cooperation related to the transaction in the Chinese currency yuan in Pakistan.
As per the report, such development could be an alternative payment option for Pakistan that would raise the usage of yuan for transactions between Chinese and Pakistani businesses and financial institutions.
This initiative in the financial domain is seen as something that would work out for Pakistan as Pakistan buy Russian oil on discounted price and Chinese currency is acceptable to Russia.
It is pertinent to mention that currently Pakistan is paying in US dollars for oil.
