Russia and China are planning a joint scope to work on a more bilateral agreement between their two currencies, the rouble and yuan, with both countries wanting their respective banks to cooperate. Russia's First Deputy Prime Minister Igor Shuvalov specifically wants to counteract any negative effects that are affecting the Russian state from current and proposed European economic sanctions.
As Shuvalov works with China's Vice Premier Zhang Gaoli, a pact to boost the use of the rouble and yuan for transactions is on the table for discussions. The set of agreements will also include the facility for Russian banks to set up accounts with Chinese banks, and will allow Russian companies to apply for loans from Chinese firms.
Shuvalov determined not to break existing dollar trade deals but will push firms to avoid a third currency in future.
The agreement will not only cushion the sanctions against Russia over the Ukrainian crisis, which are hitting businesses' ability to gain loans from outside their domestic market, but will also encourage the China yuan into the position of a global reserve currency, possible sooner than anticipated.
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