China's yuan now accounts for nearly half of Moscow's currency market as Russian central bank calls for balanced transition to the redback

[Viet]

China's yuan now accounts for nearly half of Moscow's currency market as Russian central bank calls for balanced transition to the redback​

Brian Evans
Dec 1, 2022, 11:09 PM

Chinese buyers of Russian oil are seeking to avoid reputation damage, one analyst said. ALEXEI DRUZHININ/Getty Images

• The yuan's share of the Russian currency market is now 40%-45% vs. less than 1% at the start of the year, according to the Moscow Exchange.
• And yuan-ruble trading in October was more than 80 times the level in February, Reuters reported.
• Russia's central bank is pushing for a balanced transition to the yuan that includes imports, exports and capital transactions.

The yuan now accounts for nearly half of Moscow's currency market, and the Russian central bank has called for a balanced transition to China's currency.

The yuan's share of the currency market is now 40%-45%, up from less than 1% at the start of the year, the Moscow Exchange told Reuters.

And yuan-ruble trading reached a 185 billion yuan in October, which is an 80-fold increase from February, according to Reuters.

Since Vladimir Putin launched his war on Ukraine in February, causing Western governments to freeze the Kremlin's currency reserves, Russia has been moving away from so-called "toxic" currencies like the dollar and euro.

And Russia hopes that a stronger relationship with China and its currency can be both a short-term fix and a long-term prospect. Russian companies like Rosneft and Polyus have raised considerable amounts of yuan in the Chinese bond market this year.

On Thursday, Russia's central bank further detailed the shift away from Western currencies, saying that about half of cross-border payments are in currencies other than the dollar and euro vs. 21% at the start of the year.

But the bank also cautioned that Russian banks have limited opportunities in interest-bearing yuan investments.

"It is also important that the transition to the yuan is balanced, addressing both exports and imports, as well as payments for capital transactions," the central bank said in a financial stability report.

China's yuan now accounts for nearly half of Moscow's currency market as Russian central bank calls for balanced transition to the redback

The yuan's share of the currency market jumped to 40%-45% from less than 1% at the start of the year, according to the Moscow Exchange.

markets.businessinsider.com

As predicted Russia becomes economic slave to China. Putin is a rat in a corner without escape route (he said it).

 

[StraightEdge]

The question is, are you going to give it to them without having them pay for it?

How much Energy can China buy to be honest? 100 billions? 200 billions? Before the war, Russian economy is 1.5 trillion dollars, half that is 750 billion, I hope you have space to store 750 billion worth of discounted energy product.

You keep repeating wrong stats on almost every thread. Last time I saw you saying China vaccinated 85% of population. Now here suddenly you have this fascination of 750 billion. Russia never exported 750 billion in it's history. All information shows about 500 billion or less was their average annual exports recently.

Russia | Imports and Exports | World | ALL COMMODITIES | Value (US$) and Value Growth, YoY (%) | 2010 - 2021 (trendeconomy.com)
Russia (RUS) Exports, Imports, and Trade Partners | OEC - The Observatory of Economic Complexity

 

[jhungary]

You keep repeating wrong stats on almost every thread. Last time I saw you saying China vaccinated 85% of population. Now here suddenly you have this fascination of 750 billion. Russia never exported 750 billion in it's history. All information shows about 500 billion or less was their average annual exports recently.

Russia | Imports and Exports | World | ALL COMMODITIES | Value (US$) and Value Growth, YoY (%) | 2010 - 2021 (trendeconomy.com)
Russia (RUS) Exports, Imports, and Trade Partners | OEC - The Observatory of Economic Complexity

It's not my problem you are blind

I said half of Russian GDP is 750 billion, I never said Russia export 750 billion... In fact, that is my point saying that Russia cannot export 750 billons worth of product to offset the Chinese Yuan buy out, which is some Chinese member think they can. I mean there are no way China is going to take Rouble as they are worth less than the paper they were printing on. So tell me how Russia is balancing the book if they aren't buying RMB with Rouble??.

Dude, next time before you try to be a smartarse, please really read thru people post before you comment on.

P.S. I had already said in the previous post that "LAST TIME I CHECK AROUND 6 MONTHS AGO" China vaccination rate is 85%. On the other hand, just because it was western source does not mean the info must be correct. It said Australia have a vaccination rate of 89% when the Australian Government own statistic (Which I had already quoted) stated 95% of Australian are vaccinated.

 

[StraightEdge]

It's not my problem you are blind

I said half of Russian GDP is 750 billion, I never said Russia export 750 billion... In fact, that is my point saying that Russia cannot export 750 billons worth of product to offset the Chinese Yuan buy out, which is some Chinese member think they can. I mean there are no way China is going to take Rouble as they are worth less than the paper they were printing on. So tell me how Russia is balancing the book if they aren't buying RMB with Rouble??.

Dude, next time before you try to be a smartarse, please really read thru people post before you comment on.

P.S. I had already said in the previous post that "LAST TIME I CHECK AROUND 6 MONTHS AGO" China vaccination rate is 85%. On the other hand, just because it was western source does not mean the info must be correct. It said Australia have a vaccination rate of 89% when the Australian Government own statistic (Which I had already quoted) stated 95% of Australian are vaccinated.

You are degrading the average IQ of the forum with such baseless posts.
1. Why would you randomly mention half of Russian GDP out of thin air? In fact you are again wrong - in 2021, the Russia GDP was close to 1.8 Trillion. So half of that will be 900 billion approx.
2. You repeated the same statement of 85% multiple times, yet could not check the stats even once. No wonder almost every stat you mention is wrong. No wonder you are yet to post your source for 85% of Chinese vaccination.

For someone who has been giving fake information, you are pretty overconfident about your own capabilities. Maybe if your grey cells are starting to degrade, you should double-check before posting stats next time.

 

[Beidou2020]

Western sanctions on Russia is the greatest gift for China. The longer the Ukraine war drags on, the better for China.

 

[jhungary]

You are degrading the average IQ of the forum with such baseless posts.
1. Why would you randomly mention half of Russian GDP out of thin air? In fact you are again wrong - in 2021, the Russia GDP was close to 1.8 Trillion. So half of that will be 900 billion approx.
2. You repeated the same statement of 85% multiple times, yet could not check the stats even once. No wonder almost every stat you mention is wrong. No wonder you are yet to post your source for 85% of Chinese vaccination.

For someone who has been giving fake information, you are pretty overconfident about your own capabilities. Maybe if your grey cells are starting to degrade, you should double-check before posting stats next time.

1.) Go back to my post and read why would I mention Half of Russian GDP. And that GDP number depends on the source, I have seen it goes as high as 1.7 trillion and as low as 1.3 trillion, they uses different exchange rate, it was between 0.0125-0.0147 and I took the average number on GDP I saw. The exchange rate was the highest at the end of 2021 (around 1.4) and it was averaging around 1.3, so there will be difference if you uses end of year rate and average rate.

2.) Again, I have already said that number is around 6 months ago, maybe longer because that is when I see it, it may not be actually talking about what is the number 6 months ago exactly 6 months ago, and looking at some source, it was around mid-86% ish back in April, so it is within the realm of possibility it was around 85% on whenever the article talking about when I saw that.

On the other hand, I am going by what the Chinese reported which for what they had reported very suspicious figure, because if you were to believe Official Chinese data, there are only 5233 death since Jan 2020. Now, that is after numerous lock down and not just the initial outbreak, and their number is HALF of what Hong Kong had, which suffered in similar circumstance but smaller in scale, most statistician I know do not even trust the official Chinese figure they are giving out, because to have that amount of lockdown and case and still keep it around 5000 death is statistically impossible, either that or Chinese Frontline Medicine were this advance, and I don't think China is known for their medical science.

As I said, I am not responsible for your blind and dumb assertion. THAT was dragging down the IQ point for the entire Forum. Don't point your finger at me if you didn't check your own source or even read what other people say.

 

[Han Patriot]

No doubt China needs a lot from Russia, again, it's not what you need, but how much you need. You are talking about supporting at least half of Russian Economy, I mean, do you need 200 billion worth of Coal? Iron Ore? Or Wheat?? EVERY SINGLE YEAR?

You don't need a degree in economy to know this is a bad deal to China.

But hey, if you are okay doing this, that's fine by me, why would I worry?? EU is dumb enough to depends on Russia entirely on their resource and find out the hard way, but you are saying China is "Blessed" to do it. LOL

Do you want me to educate your again Mr LNG. Lol

 

[jhungary]

Do you want me to educate your again Mr LNG. Lol

Sure, go ahead, why stop you from making an arse out of yoruself??