On June 12, the United States imposed sanctions against the Moscow Exchange and its main settlement structures – the National Clearing Center and the National Settlement Depository.
One of China’s largest state-owned banks, Bank of China, stopped working with the Moscow Exchange after it came under US sanctions. The Moscow Times writes about it on Tuesday, July 23.
The subsidiary company, Bank of China JSC, performed the duties of a clearing bank for the yuan in the exchange. All transactions in Chinese currency in the exchange market go through it.
However, on July 15, the bank abandoned this role. The reason is the inclusion of the Moscow Exchange in the American sanctions lists.
As a result, trading in the yuan – de facto the last currency on the Russian exchange market – depends on a Chinese bank – ICBC Bank. According to sources, its Russian subsidiary is now clearing transactions in yuan.
However, it may not last long, financial market interlocutors do not exclude: the license of the US Treasury, which still allows transactions with a sanctioned exchange, is valid until mid-August. When it expires, Chinese banks will face sanctions, and exchange trading in the yuan in Russia may stop.
We reported that Moscow Exchange shares on Thursday, June 13, fell 15% amid the imposition of US sanctions.
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. Before this, only NSD was under EU sanctions.
Against this background, the Moscow Exchange announced the cessation of trading in dollars and euros from June 13.
The head of the National Bank of Ukraine, Andrei Pyshny, said that the new US sanctions dealt a heavy blow to Russia’s financial infrastructure.
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.