Russia Gives China’s Yuan a Boost as Firms Cope With Sanctions
- Western sanctions on Russia are bolstering demand for yuan
- Export strength means more receipts are being settled in yuan
This article is for subscribers only.
As Xi Jinping and Vladimir Putin prepare for a likely meeting this week to cement China-Russia relations, one area where stronger economic ties are already being seen is on the currency front.
China’s yuan is proving to be a useful release valve for Russian companies hemmed in by sanctions that prevent them trading in dollars. Russian businesses are using yuan to settle more of their trade and are boosting borrowing in the Chinese currency. Moscow is also increasing holdings of yuan in its foreign-exchange reserves.