Gold trading: Russian and Chinese regulators set to work together
On 13 September 2017 in Sochi, the Bank of Russia and People’s Bank of China signed the Memorandum of Understanding in the Field of Gold Trading.
The signing took place as part of the 18th meeting of the Subcommittee on Financial Cooperation, a body incorporated into the Committee on Preparations for Regular Heads of Government Meetings. The meeting was chaired by Deputy Governor of the Bank of Russia Dmitry Skobelkin and Deputy Governor of the People's Bank of China Zhang Xiaohui.
This newly signed memorandum is expected to intensify interaction between Russia and China in the financial sector, which in the long term will enable Russian players on the organised market of precious metals to diversify their operations.
The Subcommittee also discussed issues related to interbank cooperation, cooperation in financial markets, insurance / reinsurance and payment systems interaction. Over the course of the discussion, the parties reviewed domestic currency settlements and their progress to date, including those on Russian and Chinese border areas, as well as the prospects for growth in trade finance. The parties noted that domestic currency settlements were set to gain a boost following the recent decision by the People’s Bank of China to cancel provision ratios on correspondent yuan accounts opened by foreign banks operating in China.
Among other areas of interaction in financial markets on the agenda was the potential issue, by Russian issuers, of yuan-denominated bonds.
Regarding the interaction of national payment systems, both parties welcomed the successful issue of Mir-UnionPay co-badging cards, a recent pilot project by a major Russian bank. They reconfirmed their commitment to promoting the expansion of co-badging cards, intending for them to be issued by regional banks, among others.
The next subcommittee meeting is slated to take place in China in 2018.