RUSSIA DROPS DOLLAR: China & Russia Trade INCREASED 2400% and Set to EXPLODE!

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As Russia struggles  to survive economically , China has swooped in and announced that on Monday they will start trading more comprehensively with Russia in Chinese yuan, cutting out the dollar completely. 

From Bloomberg: “China will allow trading in forwards and swaps between the yuan and three more currencies in a bid to reduce foreign-exchange risks amid increased volatility in emerging markets.

 

China and Russia will announce a joint currency, one backed by both China’s “surprising” gold reserves and Russia’s commodity hoard. 

The China Foreign Exchange Trade System will begin such contracts with… Russia’s ruble…from Dec. 29… That will extend the yuan’s swaps trading to 11 currencies on the interbank foreign-exchange market. The new contracts come amid Malaysia and Russia are China’s eighth and ninth biggest trading partners.”

 

 

Russian President Vladimir Putin has been trying to strengthen ties with China and avoid using the dollar since the US instituted economic sanctions on his country several months ago.  

“We’re moving away from the diktat of the market that denominates all the commercial oil flows in U.S. dollars,” Mr. Putin said. Russian companies are increasingly shifting to direct renminbi-ruble trading to settle their imports and exports with Asia.

Turnover in direct transactions in the two currencies soared to $1.2 billion over the course of October, from $307 million in September and as low as $52 million in July, according to data available on the website of the China Foreign Exchange Trading System, the trading division of China’s central bank.

“Volumes are picking up as both countries aren’t against using their own currencies instead of the dollar for mutual transactions. I expect the turnover to grow,” said Evgeny Gavrilenkov, a currency strategist at Sberbank .

The Moscow Exchange reported a record daily turnover of 1.5 billion yuan ($245 million) against the ruble on October 16.

Ruble-yuan trading was launched by the Moscow Exchange in 2010 but failed to…

 

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