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A clearing house to carry out RMB transactions has been opened in Russia

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A clearing house to carry out RMB transactions has been opened in Russia

A clearing house to carry out RMB transactions has been opened in Russia
September 23
15:00 2016

According to the Central Bank of the Russian Federation, the People’s Bank of China (PBC) has appointed ICBC Bank, Moscow as a clearing bank regarding the transactions denominated in RMB on the territory of the Russian Federation.

The message reads: “This step will promote the creation of the RMB liquidity pool in Russia which will be sufficient to provide the unhindered conduction of calculations on commercial and financial transactions denominated in the Chinese currency. The step will create conditions for a greater use of national currencies in mutual payments.”

The agreements, on which this decision was taken, were achieved within the Memorandum of Understanding between the Bank of Russia and the PBC, which was signed on June 25 when Russian President Vladimir Putin was visiting China.

This year Russia is planning to release a pilot issue of federal loan bonds in RMB. The insurance companies of the People’s Republic of China, which have accumulated more than $ 1 trillion of the insurance industry reserves, will be the main investors. This was told by the First Deputy Chairman of the Bank of Russia Sergei Shvetsov in an interview with Reuters.

Shvetsov has also said that, although the trial placement of OFZ denominated in RMB would be implemented on the Moscow stock exchange, investors from China could get access to bonds through the Russian branch of the Chinese bank in Moscow. International investors will be able to get access to the bonds through Euroclear.

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