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

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

Georgia House Votes To Allow Citizens To Abolish Police Departments In The State

The Georgia House backed an effort on Friday to dissolve the Glynn County Police Department and any...

Five bombshells about Trump from Bolton ‘s book

Excerpts from former national security adviser John Bolton ’s book about his time in the Trump administration...

What's New Today

Georgia House Votes To Allow Citizens To Abolish Police Departments In The State

The Georgia House backed an effort on Friday to dissolve the Glynn County Police Department and any...

Leaked CDC document contradicts Pence claim that U.S. coronavirus cases ‘have stabilized’

Even as Vice President Mike Pence wrote in a Wall Street Journal op-ed published Tuesday that coronavirus...

Five bombshells about Trump from Bolton ‘s book

Excerpts from former national security adviser John Bolton ’s book about his time in the Trump administration...

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

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%...

Complete List of BANKS Owned/Controlled by the Rothschild Family

What’s the significance of having a central bank within a country and why should you concern yourself, your family and colleagues? Central banks are illegally...

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...

Don’t Listen to Fox. Here’s What’s Really Going On in Seattle’s Protest Zone.

It seems I live in a city undergoing a “totalitarian takeover” that will lead to “fascist outcomes”...

Iran Just Officially Ditched the Dollar in Major Blow to US: Here’s Why It Matters

Following President Donald Trump’s ban on travelers from seven predominantly Muslim countries, the Iranian government announced it would stop using the U.S. dollar “as its...

Vegan Company Turns Down Google’s $300 Million Buy-Out Offer

The company Google recently bid to buy out 'Impossible Foods,' created the "Impossible Cheeseburger" which looks, cooks, and tastes like 'real' meat. Forget the hype...

How Some Hotels are Creating ‘Rooftop Bee Sanctuaries’ to Help Bee Populations

The world’s honeybees are in rapid decline. Due to pesticide exposure, disease, and more, there are 70% fewer of them now than there were just...

Easiest Vegetables to Grow at Home

10 Easy Vegetables to Grow Do you dream of harvesting your own home grown vegetables, and wondering which vegetables are easy to grow? From pots to...

What If Money Was No Object? Every Person On Earth Should Watch This Video

You probably hear this now-cliché question all the time: “If money was no object, what would you be doing with your life?” But hearing...

Trump to Eliminate NASA Climate Research

Here comes another blow to the U.S nation. Apparently, president Trump spoke his mind and now NASA has to eliminate its research over climate. Why...

Scientists hopes of unlimited, clean nuclear energy

A milestone has been reached in the 60-year struggle to harness the nuclear reactions that power the Sun in an experiment that could lead...