09.09.2024, 22:50
Russia has named a way to solve problems in settlements with China
Source: OREANDA-NEWS
OREANDA-NEWS The creation of a joint bank would help Russia and China to normalize bilateral settlements and eliminate the current difficulties with conducting trade transactions against the background of increased sanctions pressure from the US Treasury Department. The Director of the Institute of Asian and African Countries (ISAA) spoke about this way to stabilize the conduct of bilateral operations Lomonosov Moscow State University Alexey Maslov. His words are quoted by TASS.
He recalled that the initiative to create a Russian-Chinese bank is not new, the parties discussed it several decades ago. However, currently, against the background of increased sanctions monitoring by the US financial authorities, such an idea is becoming increasingly relevant.
Maslov added that a similar initiative is now coming from several large banks from Russia. It implies, among other things, the consolidation of assets of financial structures from the Russian Federation and the People's Republic of China, as well as the creation of a network of branches of a joint bank in the territories of the two countries. As a result, all bilateral transactions that such a financial institution will handle will not be visible to a third party. However, it is too early to talk about progress on this issue, since all discussions on this topic are at an early stage, Maslov concluded.
Since the beginning of the year, information has regularly appeared in the media about the problems faced by businesses in cross-border settlements due to increased threats of restrictions from the United States. As Bloomberg wrote, Russian exporters complain that trade with China has become a gamble, as transactions are increasingly frozen or delayed. Among the possible ways to overcome difficulties, experts call the use of the onshore yuan, which, unlike offshore, is traded only on the territory of the People's Republic of China — since most problems with cross-border payments are related specifically to compliance, which passes the offshore yuan, it is proposed to withdraw rubles to Chinese jurisdiction and their subsequent exchange for onshore yuan.
He recalled that the initiative to create a Russian-Chinese bank is not new, the parties discussed it several decades ago. However, currently, against the background of increased sanctions monitoring by the US financial authorities, such an idea is becoming increasingly relevant.
Maslov added that a similar initiative is now coming from several large banks from Russia. It implies, among other things, the consolidation of assets of financial structures from the Russian Federation and the People's Republic of China, as well as the creation of a network of branches of a joint bank in the territories of the two countries. As a result, all bilateral transactions that such a financial institution will handle will not be visible to a third party. However, it is too early to talk about progress on this issue, since all discussions on this topic are at an early stage, Maslov concluded.
Since the beginning of the year, information has regularly appeared in the media about the problems faced by businesses in cross-border settlements due to increased threats of restrictions from the United States. As Bloomberg wrote, Russian exporters complain that trade with China has become a gamble, as transactions are increasingly frozen or delayed. Among the possible ways to overcome difficulties, experts call the use of the onshore yuan, which, unlike offshore, is traded only on the territory of the People's Republic of China — since most problems with cross-border payments are related specifically to compliance, which passes the offshore yuan, it is proposed to withdraw rubles to Chinese jurisdiction and their subsequent exchange for onshore yuan.
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