(MENAFN) Nelson Wong, who heads the Shanghai Centre for RimPac Strategic and International Studies, emphasized the importance of transitioning away from the US dollar in Russian-Chinese trade and opting for their respective national currencies. Speaking during the Valdai Discussion Club gathering in Sochi, Wong argued that this move is essential given the current circumstances.
Wong clarified that the shift towards de-dollarization wasn't a voluntary decision by Russia and China; rather, it became a necessity due to Western sanctions related to the situation in Ukraine. These sanctions, which included disconnecting Russia from the SWIFT interbank messaging system, significantly curtailed Russia's ability to engage in international financial transactions.
“Because of sanctions that are being imposed on Russia – Russia [which is now] out of the SWIFT system – right now trade between China and Russia cannot be settled through this system. So we are forced to look for alternative measures. Settlements in local currency, either in renminbi or rubles, is basically a must,” Wong claimed.
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