The Pakistani central bank has announced that it will officially replace the US dollar with the Chinese yuan in trade with Beijing, shortly after Washington accused Islamabad of hosting terrorists.
The State Bank of Pakistan (SBP) said in a statement released on Wednesday that all precautions had been taken to use the Chinese currency for bilateral trade and investment between the two countries.
“The SBP, as the political decision-maker of the financial and foreign exchange markets, has taken comprehensive policy measures to ensure that imports, exports and financing transactions can be denominated in yuan,” the statement said.
The development came after US President Donald Trump claimed in a tweet that Pakistan was protecting terrorists from Afghanistan.
“The United States has foolishly given Pakistan more than $ 33 billion in aid over the last fifteen years, and they’ve given us nothing but lies and deceptions because they see our leaders as fools.” They give the terrorists we chase in Afghanistan ‘With little help, a safe haven. No more!’, Trump tweeted on Monday.
US Ambassador to the United Nations, Nikki Haley, later confirmed at a press conference that the White House would hold back $ 255 million in support for Pakistan.
Washington has long accused Islamabad of allowing the Haqqani network, which is part of the militant Taliban group, to operate relatively freely in Pakistan’s porous border regions to carry out operations in Afghanistan. Islamabad denies the allegations and says that Washington overlooks the victims of Pakistan’s fight against terrorism.
China, which accounts for about 28 percent of Pakistani imports, has confirmed Islamabad’s track record in countering terrorism. The country had made “great efforts and sacrifices in the fight against terrorism” and called on the international community to “fully recognize this”.
In Pakistan is one of Beijing’s key infrastructure projects, a nearly 60 billion dollar collection of land and marine projects known as the China Pakistan Economic Corridor (CPEC).