world growth

world growth

Thursday, June 23, 2011

China, Russia Agree To Use Yuan, Ruble In Bilateral Trade

BEIJING (MNI) - China and Russia have signed an agreement to use the yuan or ruble in their bilateral foreign trade.

The People's Bank of China said in a statement that it has agreed with the Central Bank of Russia that companies from the two countries can choose to use the Chinese yuan, Russian ruble or any freely-convertible currency to settle foreign trade.

Foreign trade on China's border with Russia is already informally conducted in yuan or rubles.

Beijing is pushing trade settlement in yuan as part of its efforts to internationalize the currency.

Sino-Russian trade rose 34% y/y to $16.08 billion during the first quarter of this year, according to Chinese customs data.

The two governments agreed last November to allow their currencies to trade against each other in the Chinese spot market.

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