10:44 GMT +3 hours27 July 2016
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Japan Bank: US Sanctions Could Lead to Direct Ruble-Yen Swaps

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The Japan Bank for International Cooperationsenion's senior managing director has said that the establishment is turning to Ruble-Yen swaps, as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions.

VLADIVOSTOK (Sputnik) – Japan Bank for International Cooperation (JBIC) is turning to currency swaps as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions, the bank’s senior managing director said answering a question from Sputnik.

"We’re now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies," Tadashi Maeda said on Thursday, speaking after a conference at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok.

Commenting on the usage of the ruble in swaps, he noted that its interest rate is very high at the moment and this could "hinder" the swaps.

China launched swaps and forwards between the yuan and the Russian ruble in December 2014, making the ruble the 11th currency in the yuan swaps trading.

In October of last year, the Bank of Russia and the People's Bank of China reached a three-year agreement on currency swaps worth more than $2.4 billion.

In April, Chinese Foreign Minister Wang Yi said that he expected the overall trade turnover between China and Russia to reach $100 billion in 2015.

Russia is currently holding the Eastern Economic Forum (EEF) in the city of Vladivostok.

This is the first time that Russia has decided to hold a forum in the Far East since the introduction of Western sanctions over Moscow's alleged involvement in Ukraine's internal conflict, something that Russia has repeatedly denied.

China is sending an official government delegation and members of its business community to the EEF.

Topic:
Russia Holds Its First Eastern Economic Forum (44)
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currency exchange, ruble, Eastern Economic Forum, Japan, Russia
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  • Glamoureus
    Smashing sanctions old pal, may I suggest Obama for economical award in memories of Alfred Nobel? That's genious way of reducing petrodollars power need some kind of recognision.
  • teddy j
    FOR EVERY US SANCTIONS ADDITION AGAINST RUSSIA --

    A CORRESPONDING WONDERFUL NEWS ARRIVES...........

    truly the law of physics:

    for every action -- there will be an equal and opposite reaction.

    WHICH THE USA SEEMS to think america is EXEMPTED from the laws of physics.........and NATURE...oooppsss.......
  • anne00marie
    Is Washington accelerating the demise of the $USD? It will soon be those that are using sanctioning as a tool to punish the Russian economy, might find themselves isolated as the world finds ways to bypass the sanctions?
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