Despite Russia's ties to China, Russian banks will sell rubles only for dollars, not yuan

Section:

China, Russia Urged to Continue Efforts to Defang U.S.-dollar Sanctions Weapon

By Laura Zhou
South China Morning Post, Hong Kong
Wednesday, June 5, 2019

China and Russia should avoid using U.S. dollars in financial translations to minimise Washington’s ability to bully other countries into following its rules with the threat of sanctions, according to a top adviser to Russian President Vladimir Putin.

The two nations have been keen to cut their dependence on the U.S. dollar for some time, and continue to talk about establishing a new system for direct yuan-rouble settlements despite multiple delays.

... Dispatch continues below ...


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"The U.S. is the most powerful economy in the world. If we want to avoid dollar hegemony, the first thing we need to do is to avoid using dollars, because the foundation of the U.S. economy is based on the dollar reserves owned by other countries and this has given it the ability and confidence to press other countries to play by its rules," said economist Sergey Glaziev. ...

The dependence of the Russian economy on the U.S. dollar was illustrated by three failed attempts this week during the St. Petersburg International Economic Forum to exchange Chinese yuan for Russian roubles. Three major Russian banks refused to process the transaction, saying they would sell roubles only for U.S. dollars. ...

... For the remainder of the report:

https://www.scmp.com/economy/global-economy/article/3013246/china-russia...

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