China’s vision of multipolar order depends on yuan-based system: Oleg Deripaska

A yuan-based payment system would be crucial to building the multipolar world China has been calling for, according to a Russian billionaire and close associate of President Vladimir Putin.

“A multipolar world will depend on how quickly China could develop a payment system, and it depends upon Chinese banks,” Oleg Deripaska, the founder of Russian aluminium giant Rusal, said in Beijing on Wednesday.

“Chinese banks are too dependent upon dollar assets, and they are scared to death to take any risk, but this is reality in China.”

He said that to become a global power, China should also accelerate its efforts to expand a yuan-based debt market to boost international use of the Chinese currency in financial settlements.

“China has panda bonds, but panda bonds are very local. You need to have a global debt market,” Deripaska said, referring to the yuan-denominated debt securities issued by overseas institutions operating in China. “China needs this for its trade.”

  

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