China - Russia ditch US dollar

China - Russia ditch US dollar

MOSCOW - Russia plans to issue its first yuan-denominated bond as the country is working with China to cut reliance on the US greenback, Russian broadcaster RT reports.

China and Russia are drawing increasingly close amid a changing global landscape marked by President Donald Trump’s “America First” policy and his trade war which involves multiple battles with US allies and others alike.

Beijing and Moscow have been planning yuan bonds since 2016, but the plan has been postponed several times. According to RT, Russia now expects to issues its first sovereign debt in the Chinese currency, officially called renminbi, by the end of the year or early next year.

Both countries are concerned about “the dollar hegemony” and see the launch as a stepping stone in their bid to break the dominion up, the network said.

“It’s a step towards de-dollarization,” investment strategist with Premier BCS Anton Bakhtin told RT. “Secondly, it’s an additional bridge between us and the Chinese investors.”

As tensions escalate with the US, world countries are becoming increasingly worried about Washington using global reliance on the dollar as a weapon.