Do China-Russia trade payment frictions show limits of de-dollarisation?
Chinese banks are encountering difficulties processing payments for trade with Russia, despite efforts to move away from the US dollar. These payment frictions are attributed to Chinese banks' heightened compliance with US sanctions, leading them to use complex intermediary routes or reject transactions altogether. This situation highlights the ongoing challenges in de-dollarizing international trade, even between countries actively seeking alternatives to the US dollar. AI
