Yuan starts trading against Russian ruble

The yuan started trading against the Russian ruble from yesterday as China allowed the transactions in a move to promote the currency’s use in global trade and finance. According to a statement released by the China Foreign Exchange Trade System, a subsidiary of the People’s Bank of China, the move will help “facilitate bilateral trade between China and Russia and help develop yuan trade settlements.”

The central bank calculates the daily reference rate by taking an average of quotes from commercial banks designated to act as market makers, the statement said.

“The pace of internationalizing yuan is accelerating,” said Zhao Qingming, a senior analyst in Beijing at China Construction Bank Corp., the country’s second-largest lender. “The direct trading between yuan and ruble will help expand trade settlements in the two currencies.”