A Chinese city bordering Russia greenlights the circulation of ruble.
The People’s Bank of China has authorized Suifenhe City on the China-Russia border in northeastern China’s Heilongjiang Province as a pilot zone where the ruble can be officially used alongside the yuan.
Suifeihe City is the major hub of Heilongjiang Province’s trade with Russia.
It accounted for 80 percent of Heilongjiang’s export of goods to Russia and reported a foreign trade of 7.59 billion U.S. dollars in 2014.
Ruble is already widely used in Suifenhe, particularly in shops and hotels targeting Russian customers.
City officials believe that legalizing the use of ruble will promote bilateral economic cooperation and boost tourism.
And the pilot project will not threaten the yuan as the domestic currency.
China and Russia signed a currency swap agreement last year.
Official figures show cross-border yuan-dominated payments between China and Russia reached 1.3 billion U.S. dollars in the first half of this year.
That is a 112-percent year-on-year increase.