Chinese and Russian officials have reached an agreement to use their own currencies in bilateral trading instead of the US dollar, according to news reports out of China by Xinhua. The dollar, the world’s reserve currency, had been used by both countries up until now in most of their bilateral trade.
Government officials in both China and Russia in the recent past have criticized the dollar’s reserve status and have argued for a systemic change.
Trade between the two countries can now be settled in yuan or rubles without the need to convert to dollars. This week the Russian ruble started exchanging against the yuan in the Chinese interbank market while the yuan will be added to the Russian market in December, according to the report.
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