Shanghai Cooperation Organisation (SCO) and Global South strategic cooperation

taxiya said:

Currency swap doesn't help here. It is only to facilitate trade between the two swapping countries in local currencies. It doesn't and can not convert the dollar and euro that Bangladesh earned from US and EU.

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Russia is asking for payment in RMB, and if China does the swap, Bangladesh will surely be allowed to use it to trade with Russia.

The nuclear plant agreement was signed between Bangladesh and Russia in 2016, with disbursements beginning in 2017.

According to the agreement, the government will have to repay the loan in 20 years, from March 2027 to 2047, with a 10-year grace period ending in 2027.

The Russian loan carries an interest rate of the London Interbank Offered Rate (LIBOR) plus 1.75 percent. But the interest rate will not exceed 4 percent.

A senior ERD official said Russia has sent multiple letters to Bangladesh requesting repayment in Chinese Yuan.

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Andy1974 said:

Russia is asking for payment in RMB, and if China does the swap, Bangladesh will surely be allowed to use it to trade with Russia.

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China will NOT swap RMB with Bangladesh to cover Bangladesh and Russia trade. As I have said currency swap is NOT free flowing of currency like Euro and Dollar, it is ONLY to cover bilateral trade, the amount is only enough and delibrately limited to bilateral trade, otherwise it is not swap anymore. What you suggested is free flowing of RMB like dollar.

In a swap for every RMB given to Bangladesh, China will take in relevant amount of Taka. Both will hold these money for a period and return at the end. To give Bangladesh the extra amount of RMB for trade with Russia, China will take in more Taka which China has no use. Why should China do that? China swap with Bangladesh is to encourage Chinese export. What you suggested is to benifit Bangladesh and Russia with China sacrificing (holding large amount of useless Taka doing nothing for some years). If Bangladesh has to use RMB to pay Russia, it can borrow RMB as a loan then pay back with interest.

Always remember, China is helping, not running cherity.

I wrote up another long thread on China and FOCAC here

Interesting development -

The first nuclear power plant in Türkiye is about to be completed. Rosatom is the contractor, and the German Siemens company refused to deliver a batch of key parts, leading to the delay of the nuclear power plant. The Russians said they have ordered substitutes parts from China..

I'm glad to see them stepping up here. They also need to step training military officers. Welcoming more countries to train their military in China and use Chinese equipments and such.

China needs more countries in Central to use Gwadar to have it successful.