Russia Gets Past US Pressures and Returns to Yuan Surplus

Russia appears to have overcome for now a deficit of yuan that led to a spike in short-term borrowing costs after the US threatened to penalize lenders for processing cross-border payments.

China became Russia’s main trade partner after the nation was severed from Western markets following the 2022 invasion of Ukraine. But the Kremlin’s pivot toward the Chinese currency was buffeted by the threat of secondary sanctions, helping to push the overnight yuan borrowing rate Rusfar, an indicator of liquidity in Moscow, to more than 200% in September.