The Philippines has the highest growth rate in the conversion of its local Currency to the Chinese Renminbi so far this year, converting Rmb 350 million which is 138% higher compared to last year (2019).
The Philippines and China established a Philippine Peso (Php) to Rmb Trading Facility in 2018, allowing direct conversions between the Currencies without the need for them to be converted to the United States (US) Dollar first.
The direct conversion lessened the Php’s dependence on the US Dollar (Usd) and at the same time protecting it from manipulation of the Php-Usd Exchange Rate, and it has worked.
If you have noticed, the Php-Usd Exchange Rate has stabilized the last couple of Years to around Usd 1 = Php 50, often times now it is just around Usd 1 = Php 49.
What is interesting is that a direct Russian Rubble to Php conversion could also be established as one of the ways to go around the US’ Countering America's Adversaries Through Sanctions Act (CAATSA) Law.
This is what India and Russia have done to counter CAATSA. I think Russia should have already discussed this with the Philippines, if not yet then they should.
Not only will it help go around CAATSA but also even lessen the Php’s dependence on the Usd even more.
SOURCES:
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https://www.facebook.com/ChinaEmbassyManila/posts/1381421805388223
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