Russia, China Pledge Bigger Role for Yuan, Ruble
November 24th, 2010Via: AFP:
Prime Minister Vladimir Putin said on Tuesday the Chinese yuan would soon start trading in Russia as the countries seek to challenge the dollar and promote the use of national currencies.
“We agreed to expand the possibilities for application of national currencies during trade and economic contacts,” Putin said after talks with Chinese Premier Wen Jiabao in the former Imperial capital Saint Petersburg.
“Now the ruble started trading on the exchange in China and the yuan trade will begin in Moscow in early December,” Putin said, hailing the move as a “serious step” on the path to strengthening economic ties.
On Monday, China conducted the first yuan trade with the Russian ruble in order “to promote the bilateral trade between China and Russia” and to reduce the conversion cost among other tasks, said a statement posted on the website of the China Foreign Exchange Trade System.
Both China and Russia, which both seek to promote their national currencies worldwide, have called for a revamp of the global financial system in the wake of the global economic crisis, saying there is a need for a new supra-national currency besides the dollar.
Total trade between Russia and China is estimated to top 50 billion dollars at the end of the year, the Russian government said. Much of that trade is currently handled with US dollars rather than Chinese yuan or Russian rubles.
