Bypassing the dollar, Putin officially announced! China and Russia directly use the RMB ruble to settle, but to...

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Bypassing the dollar, Putin officially announced! China and Russia directly use the RMB ruble to settle, but to...

2018-09-14 20:25:27 34 ℃

China and Russia strengthen trade links and this year may exceed $100 billion

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[一牛财经]: Well known, the 4th (Russia) Eastern Economic Forum September 11-13 Held in Vladivostok.

In this forum, China’s special attention is mainly due to the fact that in recent years, China and Russia have further strengthened economic and trade ties, and trade development has made breakthrough progress.

Actually, according to a recent report by the China National Customs Administration, we can see that the export volume is growing and the trade balance between China and Russia is in surplus. .

At present, China is becoming the largest market for non-raw commodities in Russia, including: the growth of trade in agricultural products, food and fertilizers.

According to the latest data from Russian Customs, in the first six months of this year, the trade volume between China and Russia increased by 30.2% year-on-year. China has taken the position of Russia’s main foreign trade partners, accounting for Russia’s foreign trade. The amount is 15.2%.

Russia's main exports to China have traditionally been fuel and energy. But there are also high value-added goods, such as: China is a major buyer of Russian-made turbojet aerospace engines and turboprop aviation engines. Last year, the export value of aviation engines was 1.26 billion US dollars, accounting for 63% of such goods in Russia.

In this regard, Russian President Vladimir Putin said that the bilateral trade volume increased by nearly one-third in the first half of the year, reaching 50 billion US dollars. He added: "Therefore, we have every reason to believe that by the end of the year, we will reach a record $100 billion in trade."

Abandoning the US dollar and switching to the local currency is becoming more and more demanding

In the face of the growing trade volume between China and Russia, Alexander Arski, associate professor of economics and editor of the academic magazine Marketing and Logistics, was interviewed by the Russian Satellite News Agency. It is said that in this case, abandoning the US dollar is beneficial to both countries because it will stimulate the economies of the two countries.

Dmitri Mezentsev, Chairman of the Economic Policy Committee of the Federal Council of the Russian Federation, also said that in the context of the deterioration of Russia-US relations, the use of local currency settlement between Russia and China is increasingly has practical significance.

"The two governments have signed an intergovernmental agreement to expand their local currency settlement trade. I think this trend is irreversible. All it needs is support. Given the relationship between our many partner countries and the United States. The relationship between the local currency settlement is becoming more and more realistic," Mezantsev explained.

Unexpectedly, the Minister of Economic Development of Russia, Maxim Oleshkin, also said that countries are increasingly distrustful of the US dollar, and the demand for direct settlement between China and Russia using the renminbi and the ruble is growing. .

In addition, he also pointed out that the current bilateral settlement of Russia and China accounts for a certain share of local currency settlement. “For example, Russia-China border trade is basically settled in local currency because it is very convenient.”

Putin: Local currency settlement should be carried out in stages!

There is no doubt that China and Russia will inevitably use more and more in the future. The RMB and the ruble are directly settled, so how should this process be implemented?

In response, Putin also gave his own advice at the Plenary Session of the Eastern Economic Forum. Putin said that the switch to local currency settlement between Russia and China should be carried out in stages.

"We will proceed in stages. Now the ruble and the renminbi are listed on the Moscow Stock Exchange. Some commodities are traded in US dollars, especially some petrochemical similar products such as oil and natural gas. The settlement with the CIS countries and the Eurasian Economic Union countries is more actively using the ruble. As far as I know, 71% of export income and 79% of import income are calculated in rubles." Putin finally explained.

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