Russia and China agree to bypass the US dollar

Russia, China agree on more trade currency swaps to bypass dollar

Russia-and-China-agree-to-bypass-the-US-dollar

The Russian and Chinese central banks have agreed on a draft currency swap agreement, which will allow them to increase trade in domestic currencies and cut the dependence on the US dollar in bilateral payments.

“The draft document between the Central Bank of Russia and the People’s Bank of China on national currency swaps has been agreed by the parties,” and is at the stage of formal approval procedures, ITAR-TASS quotes the Russian regulator’s office on Thursday.

The Russian Central Bank is not giving precise details on the size of the currency swaps, nor when it will be launched. It says this will depend on demand.

According to the bank, the agreement will serve as an additional instrument for ensuring international financial stability. Also, it will offer the possibility to obtain liquidity in critical situations.

“The agreement will stimulate further development of direct trade in yuan and rubles on the domestic foreign exchange markets of Russia and China,” the Russian regulator said.

Currently, over 75 percent of payments in Russia-China trade settlements are made in US dollars, according to Rossiyskaya Gazeta newspaper.

In early July, the Central Bank’s chairwoman Elvira Nabiullina said Moscow and Beijing were close to reaching an agreement on conducting swap operations in national currencies to boost trade. The deal was later discussed during her trip to China.

President Vladimir Putin, during his visit to Shanghai in May, said cooperation between Russian and Chinese banks was growing, and the two sides were set to continue developing the financial infrastructure.

“Work is underway to increase the amount of mutual payments in national currencies, and we intend to consider new financial instruments,” Putin said after talks with President Xi Jinping.

Later on, during his meeting with leading international news agencies on the sidelines of the St Petersburg’s economic forum, Putin said that Russia and China had made “the first modest steps” in using national currencies in international settlements. He added that the two countries were going to continue exploring opportunities for working together.

See also: Barack Obama’s 53rd birthday marked with racist laser projection and banner in Moscow

A currency swap is widely used and allows simultaneously exchanging a specific amount of one currency for another currency with two different settlement dates.

Source | RT

Find us here

Get news from the CSGLOBE in your inbox each weekday morning

The views and opinions expressed in this article are those of the authors/source and do not necessarily reflect the position of CSGLOBE or its staff.

Paid content

Putin has Banned Rothschild and His New World Order Banking Cartel Family from Entering Russian Territory

As of recently, Russian president Vladimir Putin took yet another decision for his country. "Under any circumstances", the Rothschild family is banned from entering Russian territory. Along...

Rothschild Bank Now Under Criminal Investigation After Baron David De Rothschild Indictment

Last year, Baron David de Rothschild was indicted by the French government after he was accused of fraud in a scheme that allegedly embezzled...

14 African Countries Who Still Pay Colonial Tax To France

80% of the 10 countries with the lowest literacy rates in the WORLD among adults are in francophone Africa. Namely: Benin (40%), Burkina Faso (26%),...

What's New Today

Racial wounds rip open under a president with a history of exploiting them

President Donald Trump has spent much of his adult life building his brand around racial divisions.

Bill Gates is the top target for coronavirus conspiracy theories

Bill Gates has been one of the most outspoken public figures about the coronavirus pandemic. But the...

China Is Turning The Rainforest Into Cheap Furniture For The U.S.

Driven by American demand for cheap furniture, China has become the greatest importer of illegal timber. The...

An alarming number of Americans say they will not get a COVID-19 vaccine when it becomes available

As Big Pharma races to develop a COVID-19 vaccine that could save millions of lives globally, nearly...

MOST READ

What Is Agenda 21? Depopulation of 95% of the World By 2030

Most people are unaware that one of the greatest threats to their freedom may be a United Nations program which plans to depopulate 95%...

Putin has Banned Rothschild and His New World Order Banking Cartel Family from Entering Russian Territory

As of recently, Russian president Vladimir Putin took yet another decision for his country. "Under any circumstances", the Rothschild family is banned from entering Russian territory. Along...

Rothschild Bank Now Under Criminal Investigation After Baron David De Rothschild Indictment

Last year, Baron David de Rothschild was indicted by the French government after he was accused of fraud in a scheme that allegedly embezzled...

Putin has Banned Rothschild and His New World Order Banking Cartel Family from Entering Russian Territory

As of recently, Russian president Vladimir Putin took yet another decision for his country. "Under any circumstances", the Rothschild family is banned from entering Russian territory. Along...

So It Begins: American Police Start Pushing to Weaponize Domestic Drones

Police are now voicing their concerns about domestic drone use — specifically, they want the option to be able to employ weaponized drones in...

Vermont Becomes First to Have Mandatory GMO Labeling

After months of consumer and activist comments, picketing at the Attorney General’s Office, and winning a lawsuit against Monsanto who tried to overturn the...

Johnson & Johnson Ordered To Pay $72 Million For Ovarian Cancer Death Linked To Baby Powder – Here Are The Details

Johnson & Johnson, an American multinational corporation that specializes in developing medical devices and selling pharmaceutical and consumer packaged goods, has been ordered to...

Mathematical Report Proves Human Society Is Too Complex to Be Ruled by a Government

Society is past the point of being governed. We no longer need a president to function as a healthy society. In fact, the idea of...

Sex Orgies, Prostitution, Porn: Allegations shake Catholic Church in Italy

Lurid accusations of priests involved in sex orgies, porn videos and prostitution have emerged from several parishes in Italy recently, sending shock waves all...

Scientists Announced That The Human Genome Contains DNA From An Unknown Species

The evolutionary tree for modern humans a bit of a mess Humans haven’t had a close relative on this planet for over 10,000 years, but...

US should expand nuclear arsenal – Trump to Reuters

President Donald Trump said he wanted to rebuild the US nuclear arsenal to ensure it was at the “top of the pack,” and vowed...