Japan Bank: US Sanctions Could Lead to Direct Ruble-Yen Swaps

© Flickr / Japanexperterna.se1000 yen bills and 10,000 yen bills spread out on a table.
1000 yen bills and 10,000 yen bills spread out on a table. - Sputnik International
The Japan Bank for International Cooperationsenion's senior managing director has said that the establishment is turning to Ruble-Yen swaps, as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions.

VLADIVOSTOK (Sputnik) – Japan Bank for International Cooperation (JBIC) is turning to currency swaps as using the US dollar in transactions is difficult because of the Western anti-Russia sanctions, the bank’s senior managing director said answering a question from Sputnik.

"We’re now studying that [the effects of ruble devaluation]. We need some of the swap arrangements with the local banks. We are elaborating opportunities with Russian banks such as Gazprombank, VTB, VEB… Because of the US sanctions, we cannot use the US dollar anymore, we have to switch to other currencies," Tadashi Maeda said on Thursday, speaking after a conference at the Eastern Economic Forum (EEF) in the Russian city of Vladivostok.

Commenting on the usage of the ruble in swaps, he noted that its interest rate is very high at the moment and this could "hinder" the swaps.

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In October of last year, the Bank of Russia and the People's Bank of China reached a three-year agreement on currency swaps worth more than $2.4 billion.

In April, Chinese Foreign Minister Wang Yi said that he expected the overall trade turnover between China and Russia to reach $100 billion in 2015.

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