RMB cash demand grows in Russia

HARBIN -- Demand for the renminbi is growing in Russia thanks to bilateral trade and the internationalization of the yuan.

In 2015, Harbin Bank, in Northeast China's Heilongjiang province, transferred 35 million yuan ($5.37 million) in cash over three transactions to Moscow, making it the top Chinese financial institution for renminbi cash transfers to Russia, the bank said Tuesday.

RMB transfer will improve the currency's flow in Russia and support bilateral trade.

China and Russia have improved financial cooperation to boost bilateral cooperation in recent years.

In October, an alliance of 35 Russian and Chinese financial institutions was established to better serve cross-border financial activities during the second China-Russia Expo held in Harbin, capital of Heilongjiang.

The central banks of the two countries signed a currency swap agreement worth 150 billion yuan or 815 billion Rubles in October 2014.

Cross-border cash transfer of the RMB first began between China and Singapore in 2014.

As a landmark event in its internationalization, the RMB was admitted by the International Monetary Fund (IMF) into its Special Drawing Rights basket alongside the dollar, euro, pound sterling and yen on Nov 30.