MOSCOW: Russia and China have resolved to making use of their national currencies more often in international deals as Russia’s sour relationship with the West deepens,
Vladimir Putin, Russian President reveals. Putin said this would “increase the stability of banks’ servicing of export and import operations while there are ongoing risks on global markets.”
The West have place heavy sanctions on Moscow for annexing Crimea in 2014 and backing separatist rebels in eastern Ukraine.
Accusation of poisoning an ex-double agent Sergei Skripal and his daughter in Britain and the alleged interference in US election has earned Russia more stringent sanctions from the United States.
The ruble has depreciated against the dollar and euro at the wake of the latest round of US sanctions and under the threat of further measures. The US dollar has also appreciated against China’s Yuan in recent months.
Putin in July said that “political disputes” were “damaging the dollar as the global reserve currency”.He added, however, that China’s Yuan was bracing up to “acquiring the qualities” of a reserve currency.
“The Russian and Chinese sides confirmed their interest in using national currencies more actively in reciprocal payments,” Putin told journalists during a press briefing with Chinese Leader Xi Jinping after talks at an economic forum in the far eastern Russian city of Vladivostok.