China and Russia to shun dollar in favour of yuan and roubles
China and Russia will stop dealing in US dollars and instead use their own currencies in bilateral trade, according to a new agreement between the two countries.
Both countries have called for a revision global financial system following the global economic crisis, and have supported the need for a new ‘universal’ currency besides the dollar.
Russian President Dmitry Medvedev said the move would reduce the dominance of the US dollar: “The world needs more reserve currencies. The perception of the dollar has naturally changed because of the crisis in the American economy.”
Chinese President Hu Jintao is currently in Russia and has already signed a number of economic agreements with Russia.
Bilateral trade between Russia and China topped $US55 billion last year, and most trade was conducted using US dollars rather than Chinese yuan or Russian roubles.