As Zerohedge reports, the picture that emerges is one in which China has managed to convince Russia to settle oil imports in renminbi and in which the AIIB and Silk Road funds are set to help establish the yuan as the funding currency for billions in development projects.
While we may still be years away from the fabled “yuan hegemony,” we got still more evidence on Tuesday that despite the currency’s rather uncertain medium-term trajectory and despite a still closed capital account, China is moving ever closer to establishing the RMB as a reserve currency.
In August, for the first time, the yuan moved ahead of Japan’s yen for fourth place in a league table of the most-used currencies for cross-border payments compiled by Swift, the international payments provider.
As Zero Hedge reports, Russia is taking de-dollarization a step further by suggesting that a BRICS alternative to SWIFT may be in the cards. This comes as Russia (which, incidentally, is the second heaviest SWIFT user) is set to convene a BRICS summit in Ulfa on July 8-9 where the $100 billion BRICS bank will officially be launched along with a $100 billion currency reserve.
Much like the China-led AIIB, the BRICS bank is in many ways a response to the failure of US-dominated multilateral institutions to meet the needs of modernity and offer representation that’s commensurate with the economic clout of its members.
As AsiaOne reports, Thailand and Russia aim to double annual bilateral trade in 2016 to US$10 billion (S$13.5 billion), Thai Prime Minister Prayuth Chan-ocha said on Wednesday after signing several agreements with Russian Prime Minister Dmitry Medvedev in Bangkok.
Medvedev's visit to Thailand is the first by a Russian prime minister for 25 years, lending high profile international support to a Thai military government that has faced opprobrium from old ally the United States for ousting a democratic government in May.
"We exchanged opinions on how to boost trade to $10 billion next year," Prayuth said in a statement read to reporters after meeting Medvedev.
The two signed five memorandums of understanding on Wednesday to boost co-operation on energy, investment, suppressing drug crime, tourism and culture.
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