Both China and Russia have called for the dollar’s role in global trade to be diminished since the global financial crisis, and Russia is promoting the ruble as a reserve and trading currency within the former Soviet Union. China is allowing greater use of the yuan, which is not yet fully convertible, in international transactions as it seeks to reduce its reliance on the greenback. Asian exchanges that trade palm oil derivatives and gold are starting to accept yuan for payment and collateral.
“This event will become part of history in Russia-China relations, in the history of our financial markets,” Viktor Melnikov, a deputy chairman of Russia’s central bank, said at a ceremony to launch the trade at the Micex headquarters in Moscow, attended by China’s Ambassador to Moscow Li Hui. “No doubt this will become a serious catalyst for economics and trade.”
The Micex, which is Russia’s biggest exchange by volume, expects about 3 million yuan ($450,518) to change hands each day, the exchange’s Vice President Igor Marich said Dec. 6. China allowed the yuan to trade versus the ruble on its interbank market from Nov. 22.
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