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Foreign and Military Affairs

China, Russia sign revised currency agreement

(Xinhua)
Updated: 2011-06-23 21:09
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BEIJING - The People's Bank of China, the country's central bank, said on Thursday that it has signed a revised bilateral currency settlement agreement with the Central Bank of the Russian Federation.

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According to the revised agreement, individuals and corporations from both countries will be able to conduct settlements and payments using the yuan, the ruble and freely convertible currencies, the central bank said in a statement on its website.

In addition to border trade, ordinary trade may also be settled in both countries' official currencies, following the revision of the agreement.

The move will help promote bilateral financial cooperation, trade and investment, the statement said.

Analysts said the move will be of great significance in reducing reliance on the U.S. dollar in bilateral trade, lowering exchange rate risks and promoting the internationalization of the yuan.

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