Moscow and Beijing are working on a new way to cut their reliance on the greenback, as Russia plans to issue its first yuan-denominated bond, which may help the two in skirting US tariffs and sanctions.
The yuan bonds are expected to be issued by the end of the year or early next year, marking the first time that Russia issues its sovereign debt in the Chinese currency, officially called renminbi. While the two trade partners have been planning the move since 2016, it has been postponed several times.
Now the global political landscape has changed for both Russia and China, pushing the two nations into a closer partnership, Anton Bakhtin, investment strategist with Premier BCS, explained to RT in an interview. He said that while both countries –as well as many other global players– are concerned about “the dollar hegemony,” the launch of the yuan bond would be good means to resist it.