Bank of China (BOC) Pakistan Operations in collaboration with the All-Pakistan Chinese Enterprises’ Association (APCEA) held an online training session for Chinese enterprises in Pakistan on the analysis and outlook of USD, RMB & PKR rates, Gwadar Pro reported on Monday. On the occasion, Wang Jie, President of BOC Pakistan Operations delivered a welcoming speech. Dr. He Xiaobo, General Manager of Offshore RMB Trading Center, BOC Hong Kong explained the trend of the exchange rate of RMB and US dollar.
According to He, although the pandemic continues to sweep the world, the average daily trading volume of the global foreign exchange market in 2022 still increase by 14.98% from $6.58 trillion in 2019 to $7.5 trillion. “As global energy prices fall, U.S. inflation could hit a turning point, which would moderate the dollar index’s gains. China’s current account surplus will continue to be maintained, and the China-US interest rate differential is estimated to enter a convergence cycle.”
Dr. He predicted, “as the epidemic prevention and control continues to improve, the internationalization of RMB will continue to deepen, and there are abundant policy reserves, which will provide a solid foundation for the RMB exchange rate to remain basically stable.” Dr. Qazi Masood Ahmed, Professor and Director, Centre for Business and Economic Research (CBER) at the Institute of Business Administration, Karachi, presented on the exchange rate dynamics in Pakistan. He analyzed the exchange rate and interest rate of the Pakistani rupee in conjunction with the Pakistani market.
He responded to questions from Chinese companies regarding the forecast of export changes in FY2023, the advantages of providing Drawback of Local Taxes and Levies (DLTL) for the textile industry and the possibility of a SWAP between China and Pakistan. Representatives from the Chinese Embassy in Pakistan and about 150 participants from over 100 Chinese enterprises in the fields of petroleum, energy, construction, communications, wholesale and retail attended the webinar.
Credit: Independent News Pakistan-INP