CURRENT AFFAIRS

Detailed explanation-1: -The MOU was signed by State Bank of Pakistan (SBP) Governor Jameel Ahmad and his counterpart at the Peoples Bank of China Yi Gang, The News reported.

Detailed explanation-2: -the pound: renminbi is the name of China’s currency, just as sterling is the currency of Great Britain. A unit of renminbi is a yuan, just as the pound is the basic unit of sterling. Renminbi and yuan are often used interchangeably.

Detailed explanation-3: -Yuan will be a function of trade between China and Zimbabwe and acceptability with customers in Zimbabwe.

Detailed explanation-4: -Currently, USD is the largest trading partner of China, therefore the RMB is closely tied to the value of the USD. The PBOC is responsible for managing the value of the yuan, closely monitoring the dollar’s value to identify the strategy needed to maintain the stability of the local currency.

Detailed explanation-5: -Although China is the world’s second-largest economy, the yuan is much less a global currency than the dollar or the euro because of strict capital controls imposed by Beijing to maintain the yuan’s stability. On the mainland, foreigners are basically prohibited from trading yuan-denominated stocks and bonds.