Understanding China, One Blog at a Time

An American in China

Rubles for Rubbish or Cash for Trash- China and Russia Scrap the Dollar

Posted by w_thames_the_d on November 29, 2010

China and Russia will only trade Rubles and RMB in the future (see excerpt below), its a move that is geared to…. well I really dont know why. I guess the conversation went like this
chicom-hey wanna buy some worthless crap impregnated with toxic chemicals?
russia- milk?
chicom- uh no, well we can give you that too if you wish.
russia-Im a little broke, can you run me credit?
-chicom-you never pay your debts, got dollars?
-russia nyet
chicom- ok, I’ll send you ,,,,, how about 50 million USD worth of useless junk and you return the favor by paying my in rubles, ie kleenex, that way your GDP goes up and mine too
-russia deal

excerpt: BEIJING – Local currency settlement between China and Russia will help banks and enterprises in both nations reduce costs and exchange rate risks, Ma Delun, deputy governor with the People’s Bank of China, said Monday.

China started to allow the yuan to trade against the Russian ruble on its foreign exchange market from Nov 22 and the yuan will trade on the Russian market in the near term.

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