Zero Hedge — Russian Firms Rush To Open Accounts At Chinese Banks

It's the latest example of a phenomenon first described by Credit Suisse's Zoltan Poszar, who warned during a recent interview with Bloomberg that sanctions against Russia- along with the ban of most Russian banks from SWIFT - could lead to greater reliance on the Chinese yuan by Russian companies. As we said, China's yuan, which presently accounts for just 2.7% of world reserves, is one option for anxious reserve managers in Moscow or elsewhere.…

Another Chinese businessman with strong ties to Russia had this to say: "It's pretty simple logic. If you cannot use U.S. dollars, or euros, and US and Europe stop selling you many products, you have no other options but to turn to China. The trend is inevitable."

And as Reuters concludes: he willingness of emerging market giants such as China to sustain business relations with Moscow is indicative of a "deep rift over what the western press has described as Europe's biggest crisis since WWII.

Ultimately, this trend promises to chip away at the dollar's dominance in global trade....

Stands to reason that the US will impose sanctions on China, which is where things start to get really interesting. China cannot buckle to the US and maintain sovereignty.

Zero Hedge
Russian Firms Rush To Open Accounts At Chinese Banks
Tyler Durden