Renminbi (RMB)/Yuan Appreciation & Internationalization
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CIPS use growth in Q4 2023: up ~100k transactions & 1 trillion RMB ($140 billion) from Q3.
Russia and China have almost completely stopped using the dollar in their mutual trade, Foreign Minister Sergei Lavrov said in Moscow on Monday, according to Tass.
More than 90% of settlements are carried out in the two countries’ national currencies, Lavrov said. Trade and economic cooperation between Russia and China is actively developing despite persistent attempts by Western countries to prevent this, he added.
Trade between Russia and China increased by 26% to $240 billion in 2023
More than 90% of settlements are carried out in the two countries’ national currencies, Lavrov said. Trade and economic cooperation between Russia and China is actively developing despite persistent attempts by Western countries to prevent this, he added.
Trade between Russia and China increased by 26% to $240 billion in 2023
Seems obvious at this point to just set up another bank designed to be sanctioned and route all Russian transactions through it. No USD transactions, no clients from other countries which can be held at risk, and US secondary sanctions can go pound sand. Presumably you'd need shell corporations and such to obfuscate which Chinese firms are doing business through it.
Businesses complain that not a single bank in China accepts payments from Russia
Business FM was contacted by one of the radio station’s listeners, Alexey, who supplies metalworking equipment from China. According to him, over the past two months, not a single Chinese bank has accepted payments from his company.
Business FM was written by one of the radio station’s listeners, Alexey. He is the CEO of a company that supplies metalworking equipment from China.
Alexey spent the last two months in this country, negotiating with suppliers and banks; he visited more than a dozen of them. And refusals came from almost everyone: even those banks that were previously ready to compromise now refuse to cooperate with Russian clients due to the threat of sanctions. They talk about it directly.
According to Alexei, this change in attitude occurred within a matter of days after US Secretary of State Antony Blinken arrived in China. Blinken himself said the day before that the United States could impose sanctions against China for the supply of dual-use goods to Russia.
A possible option for paying for Chinese goods is VTB Shanghai, where Russian companies began to open accounts en masse. However, according to Alexey, it is almost impossible to get service there, since there are thousands of clients and dozens of bank employees. You have to wait for months.
Alexey himself tells the story.
— Today, all these banks have the same answer: we no longer work with Russia. All payments with Russia have been stopped, that’s it. Let’s say, if a week ago we were still negotiating with the Industrial Bank on sanctions lists and non-sanction lists, for example, they said: “You can’t use machine tools, you can’t use stabilizers, this isn’t allowed. Let’s say we miss payments on shoes, we miss payments on building materials, and so on.” Yesterday Industrial Bank said: “We no longer accept any payments from Russia for anything. You can only receive money inside China.” When asked, again, whether it is possible to transfer money, whether they will skip payments from Dubai and somewhere else, they say: “No, we won’t, because you are Russians, Russians are prohibited.”
— Your business has stopped now, isn’t it?
— It has stalled very badly for us. We hope that on Monday we will ship a very expensive machine for a large Russian customer, but we have been trying to pay for it for a month in every possible way. Even those Chinese banks that have opened accounts in Russian banks and are trying to do something there in rubles, now almost all of them refuse to open accounts. The Chinese are very afraid of sanctions, and for them Russia is not their primary partner, as they say. That is, if they lose us, they will calmly survive it.
— What are your prospects now?
— VTB Shanghai is so far the only direct and more or less reliable option. But the situation there is very sad. If they put about 30 more people there, I think they will quickly process this whole matter and, as they say, normalize work. And with the staff that is there now, they will do this for another three years. At that time, three months ago, they had just announced that they were starting to open accounts. The manager wrote to me that we would open it in a week after providing the full package of documents, we sent them the full package of documents in two days, and that’s all. Then she simply disappeared for two months and, as they say, generally stopped responding to any letters. Yesterday she wrote to me that they couldn’t even name any horizons, even distant horizons.
At the same time, Beijing previously criticized Washington for “baseless accusations” regarding “normal trade and economic relations” with Moscow.
As soon as the US threatens to sanction Chinese banks，Chinese banks are scared to death and immediately cutoff all Russia related translations . Including the very ICBC you mentioned. Apparently even big SOE banks don't have the balls to do jack shit when put under US pressure.
so we'll see China-Russia trade drop to 0 as of April 2024.
Let's bet. Loser banned for 6 months?
If Chinese gov don't do anything about it，I don't see any Chinese banks don't bent under US pressure.
Chinese Banks are just like Chinese companies，unless the gov step in，you cannot expect them to confront the US gov.
So far I see no action from the Chinese gov，such as guarantee protection for those banks do business with Russia，or just order SOE banks to do business with Russia regardless of potential consequences.
Chinese Banks are just like Chinese companies，unless the gov step in，you cannot expect them to confront the US gov.
So far I see no action from the Chinese gov，such as guarantee protection for those banks do business with Russia，or just order SOE banks to do business with Russia regardless of potential consequences.
Chinese companies can open account in Russian banks and do business with Russians，but from what I heard Russian banks only open
to big Chinese SOE，not small private companies.
Also，there is indirect way，such as open account in Dubai or some third countries.
Why do you think there is so many complains about it from Russian business if everything goes smoothly？