Moscow Micex began operating the yuan against the ruble for the first time today

Moscow Micex exchange began operating the yuan against the ruble for the first time today, as Russia and China try to reduce the use of dollars in trade.

The ruble closed at 46.3405 for 10 Chinese yuan for 11 hours in Moscow, after opening at 46.35 yuan for 10 shortly after 10 am By the end of the session the trading volume amounted to 4.92 billion yuan (738 850 dollar), or 22.78 million rubles, according to data from the index.

Both China and Russia have demanded that the dollar's role in world trade declined from the global financial crisis, and Russia is promoting the ruble as a reserve currency and trade within the former Soviet Union. China is allowing greater use of the yuan, which is not yet fully convertible in international transactions as it seeks to reduce its dependence on the dollar. Asian exchange derivatives trading palm oil and gold are starting to accept yuan for payment and warranty.

"This event will become part of history in relations between Russia and China, in the history of our financial markets," said Viktor Melnikov, a deputy chairman of Russia's central bank, in a ceremony to launch the trade at the headquarters Micex in Moscow, attended by the Ambassador of China Li Hui Moscow. "No doubt this will become a major catalyst for the economy and trade."

The Micex, which is the largest exchange in Russia by volume, expects about 3 million yuan (450,518 U.S. dollars) changed hands every day, the exchange of vice Igor Marich said on 6 December. China allowed the yuan to trade against the ruble in the interbank market on November 22.

'Exotic'

"It is an exotic cross that can develop in importance in coming years," Piotr Matys, an emerging markets analyst at 4Cast currency Ltd., said by phone from London today. "The dollar will remain the most important currency trading, but obviously, given the relationship of these two countries' trade this step makes sense."

Russian Chinese companies buying products such as timber, seafood and coking coal and Russian companies importing Chinese goods are the main customers of trade yuan, rubles, Melnikov rossii Bank said on December 6. Customers of Russian banks doing business in China will be able to save up to 5 percent in transaction costs for buying yuan through Micex, according to Melnikov.

Chinese Premier Wen Jiabao said in March that he was "troubled" by holding assets denominated in U.S. currency. The derivatives exchange Berhad, which sets the global benchmark for crude palm oil, was launched in November to accept the Chinese yuan as margin collateral for trading in the derivatives market in Malaysia. The Chinese Gold & Silver Exchange will start the first international gold yuan early next year, the Financial Times reported yesterday, citing President Haywood Cheung exchange.

"The launch of this trade is a great thing," said Ruben Aganbegyan, president of the Micex. "It will become the leading currency pair in our market, but the first step in a very interesting direction."