Payments in national currencies between Russia and China to reduce financing cost for Russian companies - RDIF
The agreement between Russia and China on transition to payments in national currencies is an important step helping to reduce financing cost for Russian companies, chief executive of the Russian Direct Investment Fund Kirill Dmitriev told reporters on the sidelines of the G20 summit on Friday.
"The topic of investments in national currencies is critical but there is still much effort required to be done, because ruble and yuan markets are insufficiently developed so far. Nevertheless, we are confident these markets will be developed with support of the Central Bank and the Ministry of Finance of Russia. We believe ultimately that the financing cost for many Russian companies will go down and will be more beneficial in national currencies, rather than in dollars," Dmitriev said.
Russia and China signed a framework agreement on transition to settlements in national currencies, mass media reported earlier.
A significant portion of settlements between Russia and China already takes place in national currencies, Dmitriev said. "If we look at SWIFT transactions across the globe, they lost 5% over the last eighteen months. We believe this is just the beginning because as far as the dollar is used as a political tool, its economic strength weakens," he said.