China wants to pay in rubles for Russian timber, coking coal and seafood, as the two countries seek to boost bilateral trade in national currencies, Russian Central Bank official Viktor Melnikov said Monday.
MICEX will start trading in yuan-ruble on Dec. 15 to support bilateral trade ties, Igor Marich, a vice president of the bourse, told a conference. This move follows the launch of the forex pair in China on Nov. 22.
Russia is trying to raise the profile of the ruble and has called for a reduction in reliance on the U.S. dollar as a global reserve currency. China, Moscow's second-largest trading partner after the European Union, is interested in establishing long-term supplies of oil and gas from Russia.
Marich said the daily volume of the yuan-ruble trading is expected to average 3 billion yuan ($450.2 million) with the trading session lasting for one hour from 10 a.m. Moscow time.
About 40 banks have demonstrated interest in trading Chinese currency against the ruble, and five of them will act as market makers, including VTB, My Bank — Russia's affiliate of Chinese ICBC bank — and a local subsidiary of Bank of China, Marich said.
China accounts for 9.5 percent of Russia's foreign trade. Bilateral trade rose to $41.8 billion in the first nine months of 2010 compared with $26.7 billion a year ago, according to the Russian Federal Customs Service.
A Message from The Moscow Times:
Dear readers,
We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."
These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.
We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.
Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.
By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.
Remind me later.
