The monetary regimes of China and Russia, two of the world’s most resource-rich nations, are drawing closer with every passing day.
La Chine et la Russie inquiets de l’impérialisme juridique monétaire et financier américain ont lancé lundi un système de paiement; les américains se sont arrogés le droit de mettre sous leur juriodiction quasi tous les paiements en dollars puisqu’ils sont compensés chez eux. C’est ce qui leur permet d’imposer leur lois et leurs embargos. Les pays rebelles ont évidemment intérêt à échapper le plus rapidement possible à cette dictature, dont l’emprise est revélée par la maultiplication des amendes et de ce que l’on appelle les sanctions. Les sanctions reposent sur ce monopole des paiements en dollars.
In the latest push for convergence, China has established a payment versus payment (PVP) system for Chinese yuan and Russian ruble transactions in a move to reduce risks and improve the efficiency of its foreign exchange transactions. The PVP system for yuan and ruble transactions, designed to streamline commerce and curency transactions between the two nations, was launched on Monday after receiving approval from China’s central bank, according to a statement by the country’s foreign exchange trading system.
It marks the first time a PVP system has been established for trading the yuan and foreign currencies, said the statement, which was posted on Wednesday on the website of the China Foreign Exchange Trade System (CFETS).PVP systems allow simultaneous settlement of transactions in two different currencies.
According to CFETS, the system would reduce settlement risk as well as the risk of transactions taking place in different time zones, and improve foreign exchange market efficiency. Of course, if the two countries had a blockchain-based settlement system, they would already have all this and much more.
CFETS said it plans to introduce PVP systems for yuan transactions with other currencies based on China’s Belt and Road initiative, and complying with the process of renminbi internationalization.
Russia, however, is a top priority: the world’s biggest oil producer recently became the largest source of oil for China, the world’s top energy consumer.
To be sure, the monetary convergence between Beijing and Moscow is hardly new. The most notable recent development took place in April, when the Russian central bank opened its first overseas office in Beijing on March 14, marking a step forward in forging a Beijing-Moscow alliance to bypass the US dollar in the global monetary system, and to phase-in a gold-backed standard of trade.
As the South China Morning Post reported at the time, the new office was part of agreements made between the two neighbours « to seek stronger economic ties » since the West brought in sanctions against Russia over the Ukraine crisis and the oil-price slump hit the Russian economy.
At the time, Vladimir Shapovalov, a senior official at the Russian central bank, said the two central banks were drafting a memorandum of understanding to solve technical issues around China’s gold imports from Russia, and that details would be released soon, to which we said that If Russia – the world’s fourth largest gold producer after China, Japan and the US – is indeed set to become a major supplier of gold to China, the probability of a scenario hinted by many over the years, namely that Beijing is preparing to eventually unroll a gold-backed currency, increases by orders of magnitude.