-Russia's currency is trading at 75 rubles per US dollar, the lowest it has been in 10 months.
-The 20% depreciation since December comes amid falling energy revenues and higher government spending.
-Russia has been selling its reserves of Chinese yuan to help close budget deficits.
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18 comment(s).Last comment by IDQWE001 2023-04-17 18:01
Then evil supporters start shouting i.diot, telling lies, traitors etc. showing them a very pity and hopeless because they know you are telling the truth with facts and figures but they don't know how to answer ...
Dollar incense! Russian central bank ridiculed: Renminbi is not freely convertible, there is a risk
[Financial Channel/Comprehensive Report] China is promoting the internationalization of the RMB, claiming to overthrow the hegemony of the US dollar, and signing local currency settlements with many countries, but it was brutally beaten by its friend Russia. The Central Bank of Russia issued a report to remind importers and exporters that RMB is not freely convertible and lacks hedging tools, so they should use RMB for settlement.The Russian central bank bluntly stated that the renminbi cannot be freely converted and lacks hedging tools, and switching to renminbi settlement will face risks.
Not only that, the Russian central bank also issued a report warning importers and exporters of the risk of switching to RMB settlement.
On April 10, the Research and Forecasting Department of the Central Bank of Russia released the report "Review of Russia's Financial Sector and Financial Instruments", publicly pointing out that under Western sanctions, changing the settlement structure of Russian export companies and adjusting the composition of counterparties cannot eliminate currency risks , if the old contract of "unfriendly" currency can be preserved, such contract can be strengthened by the central bank "encouraging" exporters.
The report puts forward the reasons. First, there are risks in the transition to RMB settlement, because the RMB or the currencies of friendly countries (referring to Russian allies) are usually not convertible or have limited convertibility; second, there is a lack of hedging tools, especially the characteristics of the currencies of "friendly countries" However, the volatility is high. Compared with the traditional "unfriendly national currency" market, the derivatives market for friendly national currencies such as the RMB is often less developed, which makes it difficult to hedge the risk of friendly national currencies.
As a result, Russia has been selling its yuan and buying Western currencies this year.
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Posted by IDQWE001 > 2023-04-13 09:34 | Report Abuse
-Russia's currency is trading at 75 rubles per US dollar, the lowest it has been in 10 months. -The 20% depreciation since December comes amid falling energy revenues and higher government spending. -Russia has been selling its reserves of Chinese yuan to help close budget deficits.