Prospects for innovations in the banking sector in terms of organizing settlements in Chinese yuan

Abstract

China and Russia aim to increase bilateral trade to 200 billion USD by 2024. In addition to the enormous potential for cooperation in the field of traditional energy and mineral products, agriculture, investment and engineering contracts, as well as scientific and technological cooperation, have developed rapidly. The latter is expected to become a new pillar of Sino-Russian economic and trade cooperation. The subject of this study is the ongoing innovation in the banking sector in the organization of settlements in the yuan between Russia and China. The international system of settlements and payments includes the transfer of financial information and the distribution of assets, it is a key link in global economic cooperation. However, the Sino-Russian system of payments and settlements is severely restricted by the United States. Against the background of abuse of the US financial hegemony and acceleration of internationalization of the yuan, the settlement system between China and Russia faces real demand for dedollarization, which lead to mutual settlements between China and Russia in the national currency, especially the RMB calculations. Based on the analysis of the actual and potential demand for Chinese yuan in the Russian market, the political environment of settlements in yuan and the technical conditions for calculating the amount, the authors concluded that the prospects for the Sino-Russian system of settlements and payments in yuan are high.