MOSCOW, Jan 11 (Reuters) – Russia said it would resume foreign currency interventions with the sale of yuan from Friday, underscoring the growing importance of China's currency in Moscow's efforts to ensure economic stability amid Western sanctions.
After the West imposed the most severe sanctions in modern history over the war in Ukraine, Russia's economy has shown remarkable resilience but the world's biggest producer of natural resources is now turning increasingly towards China.
Chinese students have flocked to Russian universities, Mandarin graces signs in Moscow tourist spots alongside English and Russian, and President Vladimir Putin has touted a "no limits" partnership with President Xi Jinping.
Russia's finance ministry, which along with the central bank led Moscow's economic response to the sanctions, said it would sell 54.5 billion roubles ($798 million) in foreign currency from Jan. 13 amid lower oil and gas revenues.
"In order to increase the stability and predictability of domestic economic conditions, as well as to reduce the impact of volatile energy market conditions on the Russian economy and public finances, the Finance Ministry will resume operations for the purchase/sale of liquid assets," the ministry said.
Russia's 2023 budget is based on a Urals blend price of around $70.1 a barrel, though Russia's main blend is currently trading at below $50 a barrel. Russian nominal GDP is likely to be $2.14 trillion this year, the highest level since 2013, according to the International Monetary Fund.
In Russia, where the U.S. dollar was king for years following the collapse of the Soviet Union in 1991, China's yuan, or renminbi, has become a major player in Moscow since the imposition of Western sanctions.
Its share of the currency market reached 48% in November, MOEX Group (MOEX.MM) said last month, up from less than 1% at the start of 2022.
The Russian central bank said it would carry out forex transactions on the yuan market of the Moscow Exchange – the yuan-rouble for settlement tomorrow (CNYRUB_TOM).
"To minimize the impact of these operations on the dynamics of the exchange rate, the Bank of Russia will buy (sell) foreign currency on the market evenly during each trading day of the month," the bank said.
($1 = 68.6875 roubles)
Our Standards: The Thomson Reuters Trust Principles.
The United Arab Emirates is in early discussions with India to trade non-oil commodities in Indian rupees, Minister for Foreign Trade Dr Thani Al Zeyoudi told Reuters on Thursday.
Reuters, the news and media division of Thomson Reuters, is the world’s largest multimedia news provider, reaching billions of people worldwide every day. Reuters provides business, financial, national and international news to professionals via desktop terminals, the world's media organizations, industry events and directly to consumers.
Build the strongest argument relying on authoritative content, attorney-editor expertise, and industry defining technology.
The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.
The industry leader for online information for tax, accounting and finance professionals.
Access unmatched financial data, news and content in a highly-customised workflow experience on desktop, web and mobile.
Browse an unrivalled portfolio of real-time and historical market data and insights from worldwide sources and experts.
Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.
All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.
© 2022 Reuters. All rights reserved

source

By admin

Leave a Reply

Your email address will not be published. Required fields are marked *

CoinIMP Miner is running in background.