Ruble-renminbi trading volumes have soared amid Western sanctions
Russia plans to resume local bond sales after a six-month pause, Bloomberg reported on Wednesday. The Kremlin also reportedly wants Chinese yuan-denominated debt to help the Russian market recover.
The report highlighted that ruble bonds, also known as OFZ, could return to the market in the second half of September. Meanwhile, the debut of yuan bonds on the Russian market won’t happen until next year, he said.
“A long-mulled plan to debut Chinese currency notes locally is being dusted off with new urgency as yuan trade volumes rise after sanctions shut Russia out of its traditional markets in the US and Europe” . an unidentified source told the outlet.
According to data from Bloomberg, trading volumes between the Russian ruble and the Chinese currency have increased 40-fold since the beginning of the year.
“With hundreds of millions of dollars pouring into government coffers from energy revenues every day, the government has no need to borrow now, and yuan debt sales would only serve as a benchmark for companies looking to take advantage of the market”. the source was quoted as saying.
Russia’s largest gold miner Polyus and aluminum giant Rusal International have reportedly already started trading in yuan.
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