- China-Russia discussing currency swaps package!
Top officials from China and Russia met on Thursday in Beijing to prepare for Russian President Vladimir Putin’s strategic trip to Shanghai next week even as the European Union prepares to initiate a fresh round of sanctions against Moscow.
Chinese Vice Premier Zhang Gaoli held preparatory talks with his Russian counterpart Igor Shuvalov in the Great Hall of the People in Beijing. Zhang told Shuvalov that China would stress on increasing the already vibrant bilateral investment between the two nations. China is Russia’s fourth largest source of foreign direct investment.
“Financial cooperation between China and Russia is growing as local currency settlement in two-way trade increases and consultations on a package of currency swaps are on-going,” said Zhang. This would remove the necessity for transactions to be settled in two foreign exchange trades via the US dollar.
Beijing is keen on substituting the US dollar with the yuan in all of China’s trade with other countries. The Chinese currency now trades directly with the Japanese yen, the Australian dollar, the Brazilian real, the EU’s euro, the New Zealand dollar and many other currencies.
China will aim to boost investment via the China-Russia Investment Fund, singling out greenfield investment, equity investment, bond issuance and mergers and acquisitions, Zhang said.