Yes, but for every tradesman and bank to switch probably takes quite some time. CIPS and the Russian system SPFS are just communication systems that connects banks. You need their banks to open RMB and Rubel accounts among one another. The two central banks also need to increase their reserves of the other currencies according to the increased trade volume. This can only be done after a political decision between Putin and Xi.
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- Thread starter bd popeye
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Most trade between Russia and China are already in rubles, rmb and euros?
This week we have witnessed a real barrage of American sanctions targeting emerging and high tech and surely as cherry on the cake a total import ban from Xinjiang under the assumption guilty until proven otherwise. All with the excuses of so called forced labour, human rights and national security.
Non-paywall:
Non-paywall:
Not sure of that. One example can be, if a Chinese client's account is full of USD, he would prefer to buy Russian things using USD avoiding the exchange charge and rate fluctuation even though the central banks have enough Rubel, RMB and EURO to facilitate the trade between the two countries.
So totally replace USD is not preferable so long as China have a large portion of its trade paid in USD. It would be a process of decreasing the portion of USD in China's world trade and Russia's increase on RMB. The reason for the later is that for a trader, Russian or Chinese, they want the most convenient and popular currency to buy things not only in the two countries but the rest of the world (except USA of course). That currency is more likely RMB than Rubel.
Therefor, my view is that establishing a technical system is the easy part, switching everybody's bank account and purchasing practice takes much longer time and effort.
What's with all the craze surrounding NFTs in the last few days? Are they going to release an NFT of Vin Diesel's wifebeater next?
As an aside, in the event of any potential cataclysmic event (war, natural disasters) that'll cripple world wide electricity grids how are people that have wealth or investments in things like bitcoins, ethereum, etc..going to be able to sustain the level of production and utilization between users when the said tech is heavily reliant on electricity and computing power if there's the supply of energy is limited or non-existent? How's this system going to be viable in such scenarios? Anyone here care to explain?
All trade with Europe should be done with euros and rmb. The Europeans would welcome that. Then use the euros for buying Russian gas and oil, since the Russians no longer accept usd.
My main point was the example of Chinese client having USD. Using EURO makes no difference than USD for such Chinese client.
Besides that, with the growing EU hostility towards Russia, EURO isn't much better a choice.
Another problem of EURO is that it is traded through SWIFT, the very center of the problem of US sanction. In this regard, EURO is as bad as USD.