Russia starts working with the Chinese yuan
2023.01.11 08:56
Russia starts working with the Chinese yuan
By Ray Johnson
Budrigannews.com – Underscoring the growing significance of China’s currency in Moscow’s efforts to maintain economic stability in the face of Western sanctions, Russia stated that it would resume foreign currency interventions with the sale of yuan beginning on Friday.
Russia’s economy has shown remarkable resilience after the West imposed the most severe sanctions in modern history due to the war in Ukraine. However, the world’s largest producer of natural resources is now increasingly focusing on China.
Chinese students have flocked to Russian universities, Mandarin is featured alongside English and Russian on signs in tourist destinations in Moscow, and President Vladimir Putin has talked about a partnership with President Xi Jinping that has “no limits.”
Due to lower oil and gas revenues, Russia’s finance ministry, which led Moscow’s economic response to the sanctions along with the central bank, announced that it would begin selling 54.5 billion roubles ($798 million) in foreign currency on January 13.
The ministry stated, “The Finance Ministry will resume operations for the purchase/sale of liquid assets” in order to “increase the stability and predictability of domestic economic conditions, as well as to reduce the impact of volatile energy market conditions on the Russian economy and public finances.”
Even though Russia’s main blend is currently trading for less than $50 a barrel, the Urals blend price in Russia’s 2023 budget is estimated to be around $70.1 a barrel. The International Monetary Fund predicts that Russian nominal GDP will likely reach $2.14 trillion this year, the highest level since 2013.
Since Western sanctions were imposed, the renminbi, or dollar, has emerged as a significant player in Moscow in Russia, where the US dollar reigned for many years following the fall of the Soviet Union in 1991.
MOEX Group reported last month that in November, it increased from less than one percent at the beginning of 2022 to 48 percent of the currency market.
According to CNYRUB_TOM, the Russian central bank stated that it would settle forex transactions tomorrow on the Moscow Exchange’s yuan market—the yuan-rouble.
The bank stated, “The Bank of Russia will buy (sell) foreign currency on the market evenly during each trading day of the month to minimize the impact of these operations on the dynamics of the exchange rate.”
($1 = 68.6875 roubles)
More Dollar is holding on to chances of strengthening are small
