Putin Says Chinese Yuan to Begin Trading on Russian Exchanges Next Month
The Chinese yuan will start trading on Russian exchanges at the start of December, after China allowed the yuan to trade against the ruble in the interbank market from Nov. 22, Russian Prime Minister Vladimir Putin said.
“Previously our countries used foreign currencies in trade,” Putin told reporters today in St. Petersburg today after talks with China’s Premier Wen Jiabao. “This is a serious step toward creating better conditions for trade and economic relations.”
In the wake of the global financial crisis, China and Russia have called for the dollar’s role in the financial system to be diluted. Volatility in major currencies is putting the global recovery at risk, Zhang Ping, the head of China’s National Development and Reform Commission, has said.
Russian President Dmitry Medvedev has promoted use of the ruble in trade and as a regional reserve currency. He has also repeatedly called for a supranational currency to compete with the dollar.
OAO Sberbank, Russia’s largest lender, reached an agreement with Export-Import Bank of China on opening a $2 billion credit line, Putin said. The money will be used to finance “major joint economic projects,” he said.
To contact the reporter on this story: Anastasia Ustinova in St. Petersburg at austinova@bloomberg.net
To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net
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