(MENAFN) The central bank of Pakistan has approved the use of Chinese yuan (CNY) for bilateral trade and investment matters, guaranteeing that imports, exports and financing transactions can be denominated in the Chinese currency.

The State Bank of Pakistan (SBP) has mentioned in a statement that Chinese yuan is an approved foreign currency for denominating foreign currency transactions in Pakistan.

It stated: "SBP has already put in place the required regulatory framework which facilitates use of CNY in trade and investment transactions."

The bank also said about the latest local and global economic progress it "foresees that CNY denominated trade with China will increase significantly going forward; and will yield long term benefits for both the countries."

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