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Russia and China trying to abandon US dollar in mutual payments
Russia and China trying to abandon US dollar in mutual payments
Since the United States has virtually declared a trade war against China and loaded Russia with sanctions, a complete refusal to use the American currency for mutual settlements would be a reasonable response from these countries. Still, neither China nor Russia can take such a decisive step however loud statements they make. Almost six years have passed since the sanctions had been imposed, but the share of the US dollar in Russia-China trade payments has declined shy below 50% only now. The Russian media have been telling about the robust de-dollarization at a breakneck pace, but in reality it has turned out to be rather difficult to ditch the American currency. According to official data, the dollar payments accounted for 75.1% of the total value of settlements between the two countries last year, in the midst of the de-dollarization. However, great progress has been achieved this year. In the first quarter, the share of dollar payments plunged to 45.7%. Remarkably, this figure has declined below 50% for the first time ever. Nonetheless, the Russian authorities have to acknowledge the importance of the American currency. It will be playing a major role in Russia-China trade relations for long. For the goods imported from China Russia pays mainly in dollars with the share of 66.5%. The total share including both the import and export in the financial flows between the countries is 55.6%. Next comes the euro with the share of 21.9%, while other currencies including the yuan account for 15.5% of the mutual payments. Some people who had expected the Russian ruble to play a dominant role may wonder what share it has in the total volume of payments. The share is 7%. So, the touted de-dollarization seems to have turned into the eurozation.

Published: 2019-08-09 07:22:34 UTC
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