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      China authorizes first pilot city of Russian ruble use

      2013-12-09 08:11 Xinhua Web Editor: qindexing
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      Chinese cabinet has authorized Suifenhe City at the China-Russia border as the country's first pilot zone where Russian ruble can function equally as renminbi, local government sources told Xinhua on Sunday.

      Under the new policy, the Russian ruble can be freely deposited and withdrawn at local banks. People can pay their bills with rubles in Suifenhe, northeast China's Heilongjiang Province.

      It is the first time since the founding of the People's Republic of China that a foreign currency is allowed to function on a par with renminbi in a designated area in Chinese mainland.

      An official with the Suifenhe Branch of the People's Bank of China, the country's central bank, said the policy would help crack down black market transaction of rubles, and to place the exchanges under proper regulation.

      Analysts said the new policy could contribute to the formation of a direct exchange rate between renminbi and Russian ruble, and help promote renminbi use in Russian cities.

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