Russia’s strategy to rely more China’s yuan is backfiring
==========
After sanctions in 2022, Russia shifted to using China's yuan for international transactions; by June 2024, yuan made up 99.6% of Russia's foreign exchange market. However, top Russian banks are running out of yuan, with Sberbank's CEO, German Gref, stating they cannot lend in yuan due to insufficient coverage. The U.S. expanded sanctions, causing Chinese banks to hesitate in transferring yuan to Russia, leading to liquidity issues. In September 2024, Russian banks raised a record 35 billion yuan from the central bank through swaps, but the central bank advised against relying on yuan loans for long-term funding. A quarter of Russian exporters faced payment issues, and inflation is rising due to military spending prioritization, as noted by Yale's Jeffrey Sonnenfeld.
#Russia #China #Yuan #Sanctions #Economy #Inflation #Putin #Zelensky #Sberbank #Trade
https://fortune.com/2024/09/07/russia-economy-china-yuan-liquidity-shortage-us-sanctions-ukraine-invasion/
Fortune /
npub1v7…9v0r4
2024-09-07 21:46:44
Author Public Key
npub1v7hvaa8pv7g92sr6na55dtzaxmrrsgddxkhst3e8atw4nxusm37sg9v0r4Published at
2024-09-07 21:46:44Event JSON
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"content": "Russia’s strategy to rely more China’s yuan is backfiring\n==========\n\nAfter sanctions in 2022, Russia shifted to using China's yuan for international transactions; by June 2024, yuan made up 99.6% of Russia's foreign exchange market. However, top Russian banks are running out of yuan, with Sberbank's CEO, German Gref, stating they cannot lend in yuan due to insufficient coverage. The U.S. expanded sanctions, causing Chinese banks to hesitate in transferring yuan to Russia, leading to liquidity issues. In September 2024, Russian banks raised a record 35 billion yuan from the central bank through swaps, but the central bank advised against relying on yuan loans for long-term funding. A quarter of Russian exporters faced payment issues, and inflation is rising due to military spending prioritization, as noted by Yale's Jeffrey Sonnenfeld.\n\n#Russia #China #Yuan #Sanctions #Economy #Inflation #Putin #Zelensky #Sberbank #Trade\n\nhttps://fortune.com/2024/09/07/russia-economy-china-yuan-liquidity-shortage-us-sanctions-ukraine-invasion/",
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