- Russia and China Urged to Accelerate Establishment of Efficient Payment ystem
- Russian Prime Minister Mikhail Mishustin Says Relations with China are Getting Stronger.
- Alternative Currencies Could Have Implications for the Global Reserve Status of the U.S. Dollar.
During the Russian-Chinese Business Forum in Shanghai, Igor Shuvalov, the chairman of VEB.RF highlighted the importance of expediting the establishment of a cutting-edge payment system for currencies within the Shanghai Cooperation Organization (SCO) and the BRICS economic group.
Tass reported on Tuesday that Shuvalov stressed the necessity of an independent and efficient payment infrastructure to support the ruble/yuan pair and facilitate significant transactions in SCO and BRICS currencies.
Describing the proposed payment system as “cutting-edge,” Shuvalov emphasized its potential to deepen trade and economic cooperation between Russia and China. The advanced infrastructure would facilitate seamless transactions between the Russian ruble and the Chinese yuan and support significant financial exchanges involving SCO and BRICS currencies.
“The creation of cutting-edge infrastructure is our economies’ debt. We urge the government of the Russian Federation and our Chinese partners to act as actively as possible. An independent and efficient infrastructure of payments is necessary not only for ensuring the ‘ruble/yuan’ pair but also for carrying out the most serious transactions in SCO and BRICS currencies.”
He further urged the Russian government and Chinese partners to take active measures in this regard.
The Role of VEB.RF and Financial Institutions
Shuvalov mentioned that VEB.RF, alongside the China Development Bank (CDB) and other financial institutions within the SCO and BRICS, could play a vital role in establishing the new payment system. These institutions would collaborate and coordinate their efforts to ensure the success of this initiative.
Quoted by the news outlet, Shuvalov said:
“Trade and economic cooperation overall between the Russian Federation and China will only rise and expand. And we, together with CDB (China Development Bank), will deepen our cooperation and coordinate our actions on this path.”
Russian Prime Minister’s Views on Strengthening Relations
Russian Prime Minister Mikhail Mishustin expressed his satisfaction with the growing strength of relations between Russia and China. During a meeting with members of the Russian business community, he highlighted the participation of numerous Russian public and private-sector companies at the Russian-Chinese Business Forum as a positive sign.
Mishustin emphasized the historical roots, mutual respect, and friendship that form the foundation of the longstanding relationship between Russia and China. These sentiments reflect the commitment of both countries to deepen their cooperation in various fields, including economics and trade. He stated:
“Our relations with China keep getting stronger. This longstanding relationship is based on historical roots, mutual respect, and friendship.”
The Potential Impact on the U.S. Dollar
Russia and China’s endeavors to strengthen their payment infrastructure and promote the use of alternative currencies could have implications for the global reserve status of the U.S. dollar. By establishing a robust payment system for SCO and BRICS currencies, these countries aim to reduce their reliance on the U.S. dollar in international trade.
As the global economic landscape evolves, developing advanced payment systems becomes crucial. Russia and China’s joint efforts to create an efficient payment infrastructure reflect their recognition of the need for innovative solutions to facilitate cross-border transactions and strengthen economic integration within their respective regions.