Russia China Financial Alliance.
                     RUSSIA CHINA FINANCIAL ALLIANCE
INTRODUCTION
• Russia and China are together taking the decision  to reduce 
their dependence on the US dollar.
• Experts say this might lead to a “financial alliance” between 
them.
Source: Iran news Daily
REDUCTION IN SHARE OF DOLLAR
• In the initial quarter of 2020, the dollar’s share of trade 
between Russia and China reduced to below 50 per cent.
• The dollar accounted for only 46% of trade settlement 
between China and Russia.
Source: Caixin Global
ESTIMATION IN SHARE OF DOLLAR
• The dollar’s share of trade between China and Russia has 
dropped to 50% level.
•  This is very less as compared to around 90% as 
recently as 2015.
Source: Financial Times
USA~CHINA TRADE WAR
• This fall down of share in dollar took place as the result of 
tensions between USA & China.
• US since the start of the Trump administration saw this share 
drop to 51% by 2019. 
Source: The Economic Times
SHARE OF NATIONAL CURRENCIES
• In the first quarter of 2020 China and Russia’s own national 
currencies accounted for a record high 24% share of bilateral 
trade settlement, while the euro’s share was 30%.
Source: USA Herald
RUSSIA ~ CHINA COLLABORATION
• The collaboration between Russia and China in the financial 
sphere tells us that they are finding the parameters for a new 
alliance with each other.
• The alliance is moving more in the banking and financial 
direction.
Source: London daily
RUSSIA ~ CHINA AGAINST USA
• China’s dependence upon the US dollar for international 
payments put it in a position of vulnerability.
• Such things have already happened to many Russian business 
and financial institutions,
Source: Mideast Discourse
ECONOMIC RECOVERY 
• The United States set to double down on its fiscal stimulus to 
boost economic recovery from the corona virus pandemic.
• But there is a growing risk of a sudden loss of confidence in 
the US dollar due to the Russia China deal.
Source: Post of Asia
DOLLAR IMPACT ON ECONOMIC
• The US economy has been afflicted with some significant 
macro imbalances for a long time, namely a very low 
domestic savings rate and a chronic current account deficit.
• Experts forecast that the dollar would reduce to 35 percent 
against other major currencies.
Source: China briefing
CONCLUSION
• Russia and China have cut down their use of the dollar in 
bilateral trade over the past several years. 
• The decision of both the countries to move away from dollar 
will have impact on USA economy.
Source: Russia Business Today