White House strategists speak of “decoupling”, decoupling between the American and Chinese economies. In Beijing, there has been discussion for some time about “de-dollarization”, which means un-anchoring Chinese financial policy from the American reference currency, the dollar. It is no mystery that China is working to internationalize its renminbi, the people’s currency, better known as the yuan. Russia, squeezed by sanctions after the annexation of Crimea, is looking for a bank in the second economy in the world, China.
–
The Russian Central Bank announced that in the first quarter of 2020 Moscow and Beijing they have reduced the value of their bilateral American currency transactions to less than 50%. The “greenback” was used in 46% of payments between China and Russia this year, the ruble and the yuan in 24% and the euro grew to 30%. In the first half of 2020, the Sino-Russian trade was 49 billion dollars. In 2015, 90% of Russian-Chinese transactions were settled in dollars. Russian experts are already greeting the birth of a “banking and financial alliance” with the Chinese.
–
The Global Timesof Beijing sees de-dollarization imminent, writes of monetary “cracks in the supporting wall of the Empire State Building”, dreams of the renminbi era. But maybe he runs too much. The voices of Chinese citizens have been running for weeks on the Mandarin social networks, anxious about the hypothesis that the American sanctions could exclude China from the Swift (Society for Worldwide Interbank Financial Telecommunication) circuit. Chinese banks have been ordered to equip themselves with the use of the Cross-Border Interbank Payment System (Cips), Reuters reported. Beijing launched it in 2015 for the internationalization of the yuan. But in 2019, the Cips processed only 135.7 billion yuan, equal to 19.4 billion dollars, a drop in the sea of the People’s Republic transactions.
–
–
August 17, 2020 (change August 17, 2020 | 21:26)
© REPRODUCTION RESERVED
–
