HomeEconomyRussia recognized the total...

Russia recognized the total dependence of the foreign exchange market on China

Photo: rossmi

If trading in the Chinese yuan stops, the foreign exchange market in Russia will actually die.

The foreign exchange market of the Moscow Exchange, under the conditions of sanctions, was forced to trade in the only available currency – the Chinese yuan. According to the estimates of the Central Bank of the Russian Federation, the Chinese currency accounts for 99.6% of the foreign exchange market in Russia, writes The Moscow Times.

By comparison, at the beginning of Russia’s full-scale invasion of Ukraine, the yuan accounted for only 3.5% of foreign exchange transactions on the Moscow Exchange, and by the beginning of 2024 this share has grown to half.

function news4698697() {
$.get(‘//’ + window.location.host + ‘/ajax/module.aspx?spm_id=444&id=4698697&lang=2&IsAjax=true’, function (data) { $(‘#nk4698697’).html(data); });
}

news4698697();

Today, in addition to the Chinese currency, only a few currencies of other countries remain on the main Russian currency exchange platform, but the trading volumes in them are insignificant. Among them are the Belarusian ruble and the Kazakh tenge, the rates of which are published by the Moscow Exchange on the main page of the website instead of the dollar and euro.

Trading also continues in the Turkish lira, which two years ago Russian authorities considered a substitute for dollars and euros, but the volume of these trades is falling rapidly due to the risk of a second penalty for Turkish bank.

Overall, the sanctions reduced currency trading volumes on the Moscow Exchange by a third. The volume of transactions here fell from 418 billion rubles to 282 billion rubles per day in the second half of June.

According to experts, if trading in the yuan stops, the foreign exchange market in Russia will really die. According to Bloomberg, the Central Bank of the Russian Federation is already considering this scenario as real.

The head of the regulator, Elvira Nabiullina, admitted that the Central Bank of Russia was “considering the risks” of stopping yuan trading. According to him, the situation with cross-border payments has become more complicated, because foreign banks of “friendly” countries are massively blocking negotiations with the Russian Federation.

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.

New Correspondent.net on Telegram and WhatsApp. Subscribe to our channels Athletistic and WhatsApp

Source: korrespondent

- A word from our sponsors -

Most Popular

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More from Author

- A word from our sponsors -

Read Now

The DPRK was promised by the “unclear” Poddjakke of Russia in the war against Ukraine

Russian military criminal, secretary of the Russian Council Sergey Shayga, visited Phogyan, where he met with Kim Jong. He promised him that the DPRK would support Russia, in particular, in the war against Ukraine. The parties discussed a joint operation in the Kursk...

In Pryluky, RF Postal House -Topl in the leader of the leader

In Pryluky, a hostile drone hit the house of the head of the local fire department. .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px; }} .Adsbygoogle {Touch-Action: Manipulation; } His family was killed: his wife,...

Russians were pushed to Constant and could be shot by a garden from artillery

The Russians have advanced towards Konstantinovka and are already shooting from artillery Ukrainian positions near the city. This is indicated in the report of the Institute of Military Research (ISW). .in_text_content_22 {width: 300px; Height: 600px; } @Media (min-width: 600px) {.in_text_content_22 {width: 580px; Height: 400px;...