Market participants from China carry the risk of falling under the secondary sanctions of the United States of America.
Chinese banks that continue to work with Russia will leave the Moscow Exchange, which is under US sanctions. The Moscow Times writes about this with reference to stock exchange statistics.
Over the past two weeks, Chinese yuan trading recorded a noticeable reduction in the average transaction size: compared to May, this figure decreased by 14%, to 1.89 million rubles – the lowest level since February 2023 .
At the same time, the turnover of the over-the-counter yuan market increased significantly: in June, transactions worth 1.98 trillion rubles were completed there – 27% more than in May. At the same time, intraday turnover broke records three times, exceeding the level of 200 billion rubles per day.
This means that the flow of Russian yuan for oil sold in China is coming from the exchange market to the over-the-counter market following the dollar and euro, where trading was halted on June 13.
Market participants from China are at risk of falling under the second US sanctions, as the Moscow Exchange is included in the sanctions list of the US Ministry of Finance with a ban on any transactions.
It was noted that the Central Bank of Russia is preparing for a scenario when exchange trading in the yuan will have to be stopped in the same way as happened with the dollar and the euro.
Let’s recall that on June 12, the Moscow Exchange, the National Clearing Center and the National Settlement Depository were included in the US sanctions letter. Following the United States, Great Britain introduced sanctions against the Moscow Exchange.
On June 13, Moscow Exchange shares opened with a fall of up to 15% amid the imposition of US sanctions. The exchange announced the cessation of trading in dollars and euros.
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Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.