The amount of bilateral ** between China and Russia exceeded the $200 billion mark a year ahead of schedule, the settlement method has completely gotten rid of third-party currencies, and the Russian Prime Minister's visit to China was received by a high standard
According to the Observer Network, on Tuesday, Russian Prime Minister Mishustin arrived in China and visited China at the invitation of Premier Li Qiang, and my country gave a high-level reception.
After learning about China's Gansu Province, Mishustin expressed his condolences and support to the Chinese side, and said that if China has any needs, Russia will do its best to cooperate.
Mishustin also said that in fact, China and Russia have moved away from using third-party currencies to pay in this year's **, and relations between the two countries are at an unprecedented height.
Last month, it was reported that the local currency settlement rate of China and Russia this year was 95%. In 2020, this data will be about 20%, an increase of 75% in three years, and China and Russia will continue to work together to expand the proportion of settlement in local currencies.
In recent years, the world is setting off a wave of "de-dollarization", and the pursuit of local currency settlement in the international community has been the current general trend, and the BRICS countries are accelerating this process. At this year's BRICS Summit, promoting the use of local currencies for settlement by member countries and promoting the diversification of the monetary system are also important topics of the summit.
There are many advantages to using local currency settlement, first of all, reducing dependence on the US dollar and reducing the impact of the US dollar on the country. The holding of the Bretton Woods Conference established the "hegemon" status of the US dollar, and later, the US dollar was linked to oil, which further consolidated its hegemonic position and gradually developed into a global "hard currency".
This also makes the United States unscrupulous, and starts printing as soon as they are short of money, because they know that it will not exacerbate the inflation problem in the United States, they can transfer the risk to other countries through the dollar, and they can also harvest the "leeks" of the world wave after wave, causing losses to the interests of other countries.
Second, the use of local currency settlement can further strengthen the economic and trade relations between the two countries and expand bilateral imports and exports. It can also reduce the risk of exchange rate fluctuations and reduce the losses caused by enterprises in foreign exchange in various countries.
Finally, we should promote currency diversification and provide a path and opportunity for the internationalization of regional currencies such as the renminbi, so that the currencies of more emerging markets can be more internationalized, which is also conducive to promoting the economic development of developing countries and enhancing their international status.
China and Russia, as the two countries with the greatest influence and the most voice among the BRICS countries, are working in this direction. Today, 95% of the two countries use local currency for settlement, which means that the ** between China and Russia is no longer limited by the US dollar, which not only reflects that the ** between the two countries can bypass the US dollar, but also better avoid risks.
It also shows that the relationship between China and Russia is getting closer and closer, and the degree of mutual trust is getting higher and higher, which is beneficial to China and Russia themselves, and at the same time, it can also cause a certain impact on the hegemony of the dollar.
It is worth noting that China and Russia have exceeded the goal of breaking through the $200 billion mark in bilateral terms by one year ahead of schedule. In 2019, China and Russia agreed that the total bilateral ** will exceed $200 billion by 2024. According to the data released by the General Administration of Customs of China on the 7th of this month, as of November, the bilateral amount between China and Russia has reached 218 billion US dollars.
Russia's and China's borders are more than 4,000 kilometers wide, making it very convenient to transport goods and develop tourism. Moreover, the complementarity between China and Russia is very strong, the potential for cooperation is huge, and the prospects are bright.