Financial regulators in China and Russia are considering the question of prolongation of a bilateral agreement on currency swaps for three years. This was stated to journalists by Vice-Premier — chief of staff of the Russian government Sergei Prikhodko on the eve of the visit of Prime Minister Dmitry Medvedev to China.
«Currently, financial regulators of the two countries are working on the issue of prolongation of a bilateral agreement on currency swap, dated 13 October 2014 for the next three years,» quotes his words TASS.
Prikhodko noted that a Russian-Chinese cooperation in the financial sector in recent years is developing quite actively. «The share of calculations in national currencies gradually increased. By 2016, the share of national currencies in payments for the export of Russian goods and services amounted to 13%, import — 16%. In the first quarter of 2017, these figures increased to 16% and 18% respectively,» — said Deputy Prime Minister.
For broader use of national currencies in international payments, China has developed a system of cross-border payments in yuan China International Payments System (CIPS), which has joined a number of Russian banks Prikhodko recalled.
According to him, the pressing issue of bilateral financial cooperation is the interaction of payment systems. Thus, the Russian national system of payment cards (nvqs) and China UnionPay have signed contracts that ensure the processing of domestic transactions using UnionPay cards to the NPCs and providing settlement services for these transactions. In addition, in 2017 in a pilot project UnionPay and Russian agricultural Bank to issue co-cards bagirovym «the World,» said Prikhodko.
In October 2014 the Bank of Russia and the people’s Bank of China signed a currency swap agreement (a tool that enables each party to access liquidity in the currency of another country, bypassing the need of purchasing in the currency markets). The volume of swap lines is 150 billion yuan (24.5 billion dollars), the term of the agreement is three years with possibility of extension.
The authorities of China there is a very clear course on the creation of currency swap lines with developing countries and trading partners, mainly from the Asia-Pacific region, said the News.Economy. Among the partners in deals with China, Australia, New Zealand, Brazil, Singapore, Hong Kong, Thailand, Argentina, Malaysia and several other countries.
Currency swaps can be considered as one of the measures that will make the ruble and the yuan more sustainable, which in turn will have a positive impact on the stability of the global financial system.
While Russia and China have long advocated reducing the role of the dollar in international trade. This is especially important for China, because more than a third of foreign exchange reserves accounted for US bonds, which means vulnerability to any changes in the exchange rate.
Meanwhile, China has become the largest trade partner of Russia with a turnover of $100 billion, displacing Germany.