MOSCOW – Russia plans to issue its first yuan-denominated bond as thecountry is working with China to cut reliance on the US greenback, Russianbroadcaster RT reports.
China and Russia are drawing increasingly close amid a changing globallandscape marked by President Donald Trump’s “America First” policy and histrade war which involves multiple battles with US allies and others alike.
Beijing and Moscow have been planning yuan bonds since 2016, but the planhas been postponed several times. According to RT, Russia now expects toissues its first sovereign debt in the Chinese currency, officially calledrenminbi, by the end of the year or early next year.
Both countries are concerned about “the dollar hegemony” and see the launchas a stepping stone in their bid to break the dominion up, the network said.
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“It’s a step towards de-dollarization,” investment strategist with PremierBCS Anton Bakhtin told RT. “Secondly, it’s an additional bridge between usand the Chinese investors.”
As tensions escalate with the US, world countries are becoming increasinglyworried about Washington using global reliance on the dollar as a weapon.
