Full de-dollarization impossible - Russian ambassador to China

MOSCOW. June 24 (Interfax) - Russia and China are continuing to increase the share of mutual settlements conducted in national currencies yet full de-dollarization is impossible, Russian Ambassador to China Andrei Denisov said on Friday.

"Full de-dollarization is impossible in principle, and no one is setting this goal, considering that the dollar is actually a tool, an accounting currency, means for international settlements and international payments. It's a different question that practices of the recent years and even months show that its use is prone to certain, rather substantial risks for us, our Chinese friends, and not just them," Denisov said on the Rossiya-24 television channel (VGTRK).

"As of this moment, the share of national currencies in trade settlements between Russia and China stands at around 20% or 25% and keeps growing. The enlargement of trade does not lead to a decrease in the share. This indicates its quantitative growth. So, the growth will continue," Denisov said. "Most of the new contracts are denominated in national currencies, while earlier contracts, which are based on the U.S. dollar as the settlement currency, or, say, natural gas contracts remain valid for now," he said.

"Yet the trend persists and will be gradually gaining momentum. Once again, no one is setting the task of a quick transition to one's detriment. Everything should be done in the natural course of events, under the influence of tangible market factors," Denisov said.