Bangladesh To Use Chinese Currency To pay Russia To Settle Payment For Nuclear Plant

In accordance with a Bangladesh government official, the two countries have agreed to use yuan to settle payment for a nuclear plant Moscow is building in the South Asian country.

Bangladesh is building the first of two nuclear power plants in collaboration with Russia's state-owned atomic company Rosatom in a $12.65 billion project funded in part by a Russian loan repayable in 28 years with a 10-year grace period.

"Russia requested that we pay in roubles, but we are unable to do so." So we've agreed to pay in Chinese yuan," said Uttam Kumar Karmaker, a senior official in Bangladesh's Economic Relations Division, according to sources.

The project will help curb frequent power cuts which analysts expect to worsen this year as Bangladesh's ability to import fuels has taken a hit following a rapid decline in the value of its currency and foreign exchange reserves.