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Russia-China Trade Stifled by Yuan’s Surge Against Ruble

  • Yuan rose to record high versus ruble amid high volatility
  • Russian demand for Chinese goods will deteriorate: CA CIB
Updated on

It has just got a lot more expensive for Russia to deal with its biggest trade partner China. 

The yuan hit a record high against the ruble this week -- surging by as much as 25% on Tuesday alone -- as sanctions were levied against the Russian central bank. Some Chinese banks have suspended trading of the currency pair, with signs of distress showing up in the widest ever bid-ask spread.