Western currencies have been almost completely phased out in Moscow-Beijing trade, as nearly all payments between the two countries are now carried out in rubles and yuan, Russian First Deputy Prime Minister Andrey Belousov has stated.
Published November 21, 2023
Since the introduction of Western sanctions on Moscow, Russia and China have accelerated the use of their own currencies in trade. According to Belousov, 95% of all transactions between Russia and China are now carried out in one of the countries’ national currencies, and given the rapid expansion of mutual trade and cooperation, this percentage is likely to grow.
Speaking at a meeting of the Russia-China intergovernmental commission in Beijing on Monday, the deputy prime minister said bilateral trade between the two countries will exceed the target of $200 billion this year, and may reach $300 billion by 2030.
He noted that China has long been among Russia’s major trade partners and that the scope of investment opportunities for the two countries is expanding.
“New joint investment projects are being launched in priority sectors such as the automotive industry, mining and gas chemical industries, agriculture, logistics, IT sector and others,” Belousov said.
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SOURCE: www.ifpnews.com
RELATED: China and Saudi Arabia sign a $7 billion currency swap agreement, adding to de-dollarization push
Published November 21, 2023
- China and Saudi Arabia signed a currency swap agreement worth around $7 billion.
- It’s yet another push towards dedollarization as countries attempt to wean off use of the greenback.
- China’s outstanding balance of forex swap lines hit a record 117.1 billion yuan, Bloomberg reported.
China and Saudi Arabia reached a currency swap agreement worth around $7 billion, marking another step in the dedollarization trend as countries around the world shift away from the greenback.
The three-year deal allows for a maximum of 50 billion yuan or 26 billion riyals.
While relatively small, the deal could loom larger symbolically as Saudi Arabia is the world’s top oil exporter, and most global oil trades are conducted in dollars.
And although Russia is China’s top oil supplier, China imported $65 billion worth of Saudi crude oil in 2022, according to Chinese customs data cited by Reuters. That adds up to roughly 83% of the country’s total exports to China.
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SOURCE: www.markets.businessinsider.com
RELATED: Attempt at De-Dollarization? China-Saudi Arabia Sign Currency Swap Deal
Published November 21, 2022
RELATED: ‘Conditions not ripe to make rupee a hard currency’
Published November 19, 2023
India should become a middle-income country and then push to make INR (rupee) a hard currency, and till then, it must promote the settlement of global trade in the local currency, think tank GTRI said on Sunday
Global Trade Research Initiative (GTRI) said that transforming a currency into a hard currency is a complex process that hinges on several pivotal factors.
Firstly, economic stability is paramount; a country must exhibit low and stable inflation, consistent growth, and a balanced trade environment.
This stability underpins confidence among international investors and trading partners, it added.
Equally crucial is the implementation of strong fiscal and monetary policies by the government and central bank, including effective national debt management and sensible interest rate policies, it said, adding aspiring for reserve currency status is a significant aspect.
This status is typically achieved when a currency is widely used and trusted, and reciprocally, it gains trust because of its widespread use.
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SOURCE: www.m.rediff.com
