Gold Trade Between Russia and China – A Step Closer Towards DE-DOLLARIZATION?

MOSCOW (Sputnik) — The largest Russian bank Sberbank is planning to increase the supply of gold to China up to 10-15 tons in 2018, the head of Sberbank CIB, the bank’s investment department, told Sputnik. “In July, our subsidiary bank in Switzerland started trading in gold in the Shanghai stock market. Under the pilot deal, we delivered 200 kilograms [440 pounds] of bars of gold to Chinese financial institutions. This year we are planning to additionally deliver about 3-5 tons of gold to China. Next year we expect the increase in deliveries to China of up to 10-15 tons. Perhaps we will even exceed this figure,” Igor Bulantsev said ahead of the third Eastern Economic Forum (EEF) in Vladivostok. … This is just a continuation of the economic and trade agreements between Russia and China; the first such official deal was the 2014 currency swap agreement of about US$ 25 billion equivalent, or rather 150 billion Yuan. Let’s not forget, both currencies the ruble and the Yuan are 100% covered by gold; actually, the ruble is backed about twice by gold.