IMAGE: Ria Novosti/Aleksandr Demyanchuk
Rusisan VTB Bank and China Merchants Bank will authorize settlements in national currencies between Russia and China, three anonymous sources close to the Russian Central Bank told Izvestia.
The countries concluded an intergovernmental agreement within the framework of dedollarization announced almost a year ago, says the letter of the Deputy Minister of Finance Sergei Storchak to the Chairman of the State Duma Committee on the Financial Market Anatoly Aksakov, according to the report.
The letter to the MP states that at the moment new mechanisms of mutual settlements in national currencies between Russian and Chinese enterprises are being developed.
As Anatoly Aksakov explained to Izvestia, one of the options could be the creation of “gateways between the Russian and Chinese counterparts of the SWIFT financial reporting system and the Chinese International Payments System (CIPS).”
Aksakov added that in order to increase the volume of settlements in national currencies, it will be necessary to form a market for ruble and yuan financial instruments.
This will insure against the risks of fluctuations in the rate of the main goods of the Russian-Chinese mutual trade. According to Aksakov, in the coming years, the share of settlements with China in rubles may increase from the current 10% to 50%.
Izvestia asked VTB for confirmation of the news, and VTB simply said that it “was the only Russian bank with a financial license on the territory of the People’s Republic of China.” In addition, VTB has correspondent accounts in national currencies with the largest Chinese banks in China, Hong Kong and Russia, as well as actively promoting the use of the ruble and yuan in foreign economic activity, the press service added.
According to one of the unnamed sources, he calculation algorithm is planned to be built by 2020.
First of all, the largest companies with state participation from the traditional sectors of Russian exports, producers of energy resources and agricultural products, will switch to payments in national currencies, he said. It is assumed that settlements in rubles and yuan will be made, including contracts that were already concluded in dollars.
Izvestia contacted the Ministry of Finance for a response. The Ministry responded that the signed document as a whole has a framework character, and further steps for its implementation will be separately discussed and agreed with Chinese partners.
Neither the Central Bank nor the People’s Bank of China officially commented on these reports.
Earlier, Chinese credit organizations were reluctant to work with Russian business: they refused to open correspondent accounts for financial organizations, delayed settlements with enterprises, Executive Vice-President of RSPP Alexander Murychev told Izvestia.
The agreement means that a policy will finally appear in China to activate mutual payments in rubles and yuan. In fact, this is a green light for authorized banks of China to work with companies from Russia, he stressed.
China prefers to carry out settlements in US currency, since local fiscal policy implies relatively cheap yuan and the accumulation of dollar assets, added Alma Obaeva, chairman of the board of the National Payment Council.
She is confident that Chinese banks will be much more willing to carry out settlements in rubles than in yuan, since they do not want to stimulate additional demand for their currency.
This report came in line with a statement by the Head of the Russian Defense Export firm (Rosoboronexport) Aleksandr Mikheev. According to him Russia had stopped using SWIFT and US dollars for defense contracts. He said that Rosoboronexport is now using national currencies instead of US dollars and emplyos a “closed system” of payments.
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Finaly, Well done, very good.
Too litle too late. Bloody Eurooe already did it and Russia and China have sat on their hands waiting for Murica’s good will to kick in. A wasted opportunity.
If the governments of these countries increase their own currency values
I mean 10 US dollar = Iranian currency 1
then nobody will use US dollar.
Please explain how that would work . I wish it would but I dont think it will.
Every country banks issue own saving bonds with unique serial number same as bank issue currency notes with a unique serial number. These are also a type of currency but these are limited to banks.
Each saving bond has a value from 1000 to 50,000 or more depends up on the currency value. If that work so it means that a new currency will also work.
Every country that has a low value of its currency they should try a new currency with a value of not less than US$10.00. They should run this new currency with old currency for at least one year and then stop the old currency.
This new currency should have 100 sub units I mean coins.
I follow you and agree with what Richard says re removing zio us dollar reserve currency status. However,wouldnt your pakn increase the value of the currency and thus make its exports more relatively expensive to its competitors?
So far ,I reckon that the Euro system or the Russo-Chinese system for weapons contracts are the best. .ie direct deposit of national home currency in each other’s banks . Outside tge US SWIFT system.I could see this Swift system being a noose around our neck a long time ago and my country is buds with jewmerica. The idiots in power in my country should be shot for having allowed this to occur.
I can write a book on this but I have no time.
Where are you and what is your country and occupation, at least you can avoid banks credit cards.
People are very clever they don’t borrow money from banks and lenders because when people borrow money and then they forget to payback so then they lose more valuables and properties than the loan they have taken. Banks also deceive public on credit score.
Trump ban Google and other companies that don’t share their technology with Huawei. So Huawei develop its own operating system but now google think that this gonna be a security threat to America. Google, apple, Facebook etc don’t think that their software apps and devices are not a little threat to other national security.
Its better for all world countries that completely ban US companies products for own security. Don’t use products like Apple, Facebook, android, Chromebook, WhatsApp, Skype etc etc. Also ban US weapons and other all products for security reason.
This needs to be built on on an international level to isolate the JewS$. And end it’s use as the global reserve currency and a primary tool of economic terrorism.
Yes that’s right. The Rothschilds have a majority of control over many global banking and finance institutes some llike the BIS are major players in many countries central banks. The BIS is the central bank’s bank. IMF, WORLD bank etc are all part of the same Zionist controlled banking cartel. But because the Rothschilds have clever accountants and lawyers they can hide their direct involvement in ANY company. So Russia and China like you said need to build a totally independent system that has an airgap between the Zionist controlled system and theirs.
And India.
But nobody wants the unstable Ruble and Yuan!
Can you provide charts or other evidence that the Chinese currency is less stable than the dollar or euro? I don’t think that you can. It’s pegged to a basket of currencies and is a component of IMF SDR.
Making these arrangements are a crucial step and the only way forwards if USA domination is to be avoided. However, I had thought this had already happened. I have been hearing reports of de-dollarization regularly over the last eight years or so. Yet we still seem to be in the stage of making announcements about future events.
Well said. Too much talk and they lumber like elephants.