Russia Seeks RMB Instead Of US Dollar Paction

Kos, chief executive officer of Russia's second largest state-owned bank, Russian Foreign Trade Bank, said on, 30, to Russian President Putin, the bank plans to expand the paction of non dollar currency valuation.

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Earlier this year, as western countries took sanctions against Russia on the annexation of Crimea, Russian officials and businessmen increasingly discussed the use of other currencies in international trade to replace the US dollar. P

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< p > Kostin said that when referring to the Russian foreign trade bank looking for an alternative currency for the US dollar, he mainly referred to the renminbi.

He said that the branches of Russian Foreign Trade Bank in China are already providing Russian roubles and RMB loans, which is crucial to the Sino Russian "a href=" http://www.91se91.com/news/index_cj.asp "bilateral trade < /a".

China is the second largest trading partner of Russia after Europe.

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< p > April, < a href= "http://www.91se91.com/news/index_cj.asp > > Russia < /a > Premier Shuvalov said that the Russian government is working closely with companies specializing in export trade so that these companies can convert the currencies of international trade from" a href= "http://www.91se91.com/news/index_cj.asp" to "dollar" /a "to rouble.

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The idea of using ruble in international trade has been put forward ten years ago. The idea was supported by Russia's proposal to build Moscow into a global financial center in 2008, P.

Russia has always wanted to enhance the image of ruble as an international trade currency and potential reserve currency, and keep pace with the US dollar and Ou Yuanhe pound.

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< p > although Russia advocated the use of roubles and Renminbi in international trade, the Sino Russian gas supply agreement, which was worth $400 billion in May, was still priced in US dollars.

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< p > Deutsche Bank recently opened seventh branches in China, Shanghai branch of the pilot free trade zone.

Branch executives said their company customers' demand for renminbi was growing.

In Shanghai, the bank is committed to cross-border pactions in Renminbi, as well as Renminbi cash pools, trade financing, cross-border lending and interest rate hedging.

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< p > "as China gradually makes RMB convertible in trade and investment, the use of RMB will definitely increase in the world, but this will be a slow process," said Lee Beng-Hong, head of Deutsche Bank's China market. "This is a great opportunity for us such a global bank."

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< p > Lee said that the depreciation of RMB has not changed the investors' view of the long-term trend of China's currency.

"The company has the real demand for Renminbi as a currency payment," Lee said. "The demand sustained by China's stable economic growth far exceeds that of some speculators."

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Less than P, since 2005, the yuan has appreciated about 20% against the US dollar.

During the financial crisis in 2008, the yuan fell sharply, and this year, with the slowdown of China's economy, it also fell.

RMB is not a free floating currency, but many fixed income fund managers believe that with the growth of China's economy, the yuan will still be strong.

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Edmund Harris, the yuan and bond fund manager of the P Guinness Atkinson fund, said earlier that for investors, the renminbi is a relatively stable way to spread the risk of the US dollar.

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< p > "you can invest in bank deposits and corporate bonds.

The market is still weak, but we think that this situation will change over time, "he said." the long-term trend of the renminbi is to strengthen rather than weaken, as more and more Asian companies will use it in financial pactions.

We have seen this trend.

This is no longer a question of whether or not it will happen.

The renminbi is being used as a trading currency, though slowly but surely, "he said.

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