China Strengthen Ties With Russia by Allowing the Use of the Ruble
China further strengthens its economic ties with Russia by allowing the country’s currency to circulate the ruble unrestricted in the city of Suifenhe. This will be the first time that Beijing has allowed a foreign currency the same legal status of the renminbi in Chinese territory.
Suifenhe is considered as the capital of the Sino-Russia trade, which allows Russian visitors to use their currency in paying for their meals, transportation fares and shopping. Before underground currency trading is rampant in the city and financial experts believe by introducing the new policy will create a boom in the use of the ruble in Suifenhe. Analysts also say that Russia might also likely to accept the renminbi to be used in one of their border cities.
The will help push the yuan ruble exchange rate and will promote cooperation between the Sino-Russian financial cooperation on a much wider scale. As of last month visiting Russians were given visa free access to the Suifenhe Sino-Russian Trade Zone.