Russia and China to sign agreement on payments in national currencies, says decree

Russia and China will sign an agreement on possible payments in national currencies. A decree of the Russian government on signing of a relevant agreement with the Chinese side was released on the official portal of legal information on Wednesday.

According to the draft decree approved through that government document, “settlements and payments for goods, service and direct investments between economic entities of the Russian Federation and the People’s Republic of China are made in accordance with the international practice and the legislation of the sides’ states with the use of foreign currency, the Russian currency (rubles) and the Chinese currency (yuan).” Economic entities agree on the choice of the payment currency and the way of payment independently.

The draft agreement also stipulates that Moscow and Beijing will cooperate in the field of functioning of national payments systems, as well as facilitate cross-border payments in national and other currencies.

“The sides deepen the cooperation in the field of national payment card systems and within the framework of the Russian and Chinese legislation provide support to commercial banks in their independent decision-making on joining the payment system in the state of the other side,” the document said.

It is planned that Russia and China will be developing bilateral payments in national currencies, encourage and expand the use of national currencies, particularly through promotion of their use when signing international trade contracts. According to the draft agreement, the sides will also assume required measures to lift barriers for payments in national currencies.

The draft agreement also noted that Moscow and Beijing intend “to actively promote the use of national currencies in bilateral trade and investment financing, facilitate trade and create favorable environment for investment of economic entities” of the two countries.

Source: TASS