The Bank of Russia and The People’s Bank of China have reached an accord on payments in national currencies. The agreement is supposed to secure the use of the ruble and yuan in bilateral payments cutting the dependence on the US dollar and the euro. Besides, it will step up sales revenues between Russia and China.
“The draft document between the Central Bank of Russia and the People’s Bank of China on national currency swaps has been agreed by the parties,” and is at the stage of formal approval procedures, ITAR-TASS quotes the Russian regulator’s press office. The spokesman said the agreement would serve as an additional instrument to ensure international financial stability. Moreover, it will offer the possibility to obtain liquidity in critical situations.
For the reference, during his visit to Shanghai in May, Russia’s President Vladimir Putin brought forward the idea of creating a new mechanism of managing Russian and Chinese currency reserves. So, a currency swap agreement is a measure which will allow both the ruble and renminbi to reinforce their positions on the forex market. In its turn, it is expected to make a favorable impact on the international finance system.
