China, Russia Urged to Continue Efforts to Defang US-Dollar Sanctions Weapon

• China, Russia Urged to Continue Efforts to Defang US-Dollar Sanctions Weapon
  by Laura Zhou, https://www.scmp.com/
  * Beijing and Moscow are seeking to forge closer economic ties in the face of Trump administration’s escalating pressure on China and continued sanctions on Russia
  * Chinese President Xi Jinping set to meet Russian counterpart Vladimir Putin on Wednesday on the eve of the St Petersburg International Economic Forum
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  China and Russia should avoid using US dollars in financial translations to minimise Washington’s ability to bully other countries into following its rules with the threat of sanctions, according to a top adviser to Russian President Vladimir Putin.
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  The two nations have been keen to cut their dependence on the US dollar for some time, and continue to talk about establishing a new system for direct yuan-rouble settlements despite multiple delays.
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  “The US is the most powerful economy in the world. If we want to avoid dollar hegemony, the first thing we need to do is to avoid using dollars, because the foundation of the US economy is based on the dollar reserves owned by other countries and this has given it the ability and confidence to press other countries to play by its rules,” said economist Sergey Glaziev.
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  “US influence would eventually be weakened if we do so.”
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  The dependence of the Russian economy on the US dollar was illustrated by three failed attempts this week during the St Petersburg International Economic Forum to exchange Chinese yuan for Russian roubles. Three major Russian banks refused to process the transaction, saying they would only sell roubles for US dollars.
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  Beijing and Moscow are seeking to forge closer economic ties in the face of Trump administration’s escalating pressure on China and continued sanctions on Russia. Chinese President Xi Jinping is expected to meet Russian counterpart Putin in Moscow on Wednesday and then head to Russia’s second largest city for the annual economic forum on Thursday.
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