Jun 06, 2019 07:32 Asia/Tehran [Updated: Feb 04, 2020 14:04 Asia/Tehran]
  • Russia and China Shatter US Hegemony by Eliminating the Dollar from Moscow-Beijing Trade

One of the main aims of Chinese President, Xi Jinping's two-day visit to Moscow is to eliminate the US dollar in Moscow-Beijing trade.

Iran PressEurope: Moscow and Beijing have signed a pact to increase the use of the ruble and the yuan in bilateral and international trade. The countries aim to cut reliance on the US dollar to avoid US sanctions targeting financial transactions of Russia and China.

The plan is to launch a new cross-border system for direct payments in national currencies. Discussions are underway to allow the use of China’s UnionPay credit card in Russia and Russia’s Mir card in China, according to well-informed sources in the Kremlin.

According to an Iran Press report, US sanctions have pushed Moscow and Beijing to think about the use of their domestic currencies in settlements, something that both Moscow and Beijing have been contemplating for decades.

According to analysts trade in rubles and yuans is the priority of both countries and eventually it is hoped, both the ruble and the yuan will turn from a convertible currency into a reserve currency.

Russia and China have been successfully implementing the terms of the ruble-yuan currency swap agreement, clinched in 2014 to boost trade using national currencies and eliminate dependence on the dollar and the euro. The deal was extended at the end of 2017.

Russian-China Presidents 

Speaking at a joint press conference in the Kremlin with Xi Jinping on Wednesday, Russian president Vladimir Putin read out a joint statement by Russia and China. The statement unequivocally stated that Russia and China fully support the Joint Comprehensive Plan Of Action, (JCPOA), and call for its full implementation by all sides.

The statement also pointed out the extreme importance of the JCPOA and the fact that there is no suitable alternative to the multilateral agreement in relation to issues pertaining to Iran's peaceful nuclear programme. The statement also emphasized UN security council resolution 2231, which fully endorsed the JCPOA, and to which both Russia and China remain fully committed.

The statement also stressed Moscow and Beijing's support for trade with Iran, and opposition to US 'unilateral and secondary sanctions'.

Speaking at the joint press conference, Vladimir Putin also stressed that both Moscow and Beijing are determined to use their local currencies (ruble and yuan) in bilateral trade. 

Trade turnover between the countries has grown significantly to $ 108 billion in 2018, up significantly from the previous year.

China is Russia’s largest trading partner, accounting for 15 percent of Russian international trade in 2017. The countries expect bilateral trade to hit $200 billion by 2024.

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