Kremlin: Russia and China may establish cross-border payment system in national currencies

Russia and China can create cross-border payment systems using national currency, according to the First Deputy Head of the Russian Government, Executive Office Sergei Prihodko, TASS reports. According to Prihodko, after the American sanctions, “new mechanisms for conducting reciprocal payment are needed.”

“We believe that shifting to payments in national currencies will significantly reduce sanctions risks and dependence of bilateral trade on the US dollar, to avoid exchange rate fluctuations and fees for money transfer,” Prihodko explained.

In October, the Russian government confirmed that it was working on reducing the Russian economy’s dependence on the US dollars.

According to the publication The Bell, the authorities do not plan to prohibit dollar payments but rather create conditions for payments in national currency, ease of currency exchange and liberalize currency legislation.

Russian Deputy Finance Minister Alexei Moiseev said that the government decided to classify the plan for the de-dollarization of the Russian economy.

  Russia, China