Russian Banks Nearly Out of Yuan! China-Russia Trade Struggles, Western Sanctions Strike Hard

Following sanctions imposed on Russia by the U.S. and other Western nations over its invasion of Ukraine, Moscow has moved away from the U.S. dollar and euro in international trade, opting instead for the Chinese yuan. However, in June, the U.S. expanded its sanctions on Russia’s military-industrial sector, increasing the risk of secondary sanctions on Chinese companies doing business with Moscow. As a result, many Chinese banks are now hesitant to transfer yuan to Russian banks for foreign trade payments, causing a severe shortage of yuan in Russia’s major banks. This has created significant challenges for Chinese exporters in receiving payments from Russia, pushing Sino-Russian trade into difficulties over the past few months.
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[Schminner]

China can just setup a Yuan printing machine in Russia, and Russia can setup a Rouble printing machine in China.... mission accomplished.

[jonathancohen]

Shipping large amounts of gold between two corrupt countries with a lack of skilled employees to track the payments. What could possibly go wrong?

[chrisgoeswest]

What? I thought the two big BRICS countries were gonna steam roll the West.

[markfischer]

The Chinese economy is in the terminal phase of collapse. Debt is 50 to 100 trillion dollars or more while GNI not adjusted for PPP is no more than 4 trillion dollars per year. China is in a structural state of economic depression with falling prices, high unemployment, and many bankruptcies. Banks face major defaults on loans made to finance its insane real estate construction industry boosting GDP in worthless investments.if China's central bank prints enough Yuan to significantly reduce debt, bankrupcies, and unemployment its value will plummet. If it doesn't then the depression will continue to get worse. Reversion to a centally planned and controlled economymea s that the days of Mao are returning.

[BrianChambers-ss]

Whoops!...India playing both sides Supplying ammunition to Ukraine for over a year!

[johnnyb]

The Russian's will soon need to learn to speak mandarin.

[fraankbyder]

With the largest bill being 100 Yuan it will never be a global currancy.

[CharlesTing-pd]

These two countries are full of dramas..😂

[BarkleyBrooklyn]

Oh the end of the dollar was far overstated

[OffendingTheOffendable]

😂😂😂 russia running out of young men to become fertilizer

[kamitekeiichi]

Start exchanging for Indian rupees😂😂😂😂❤

[controllerplayer]

YUAN

You're Undeniably Absolutely Nuisance

[eliasmiranda]

Now use paper gold backed by gold instead currency. Digital transfers of currency. Barter system is better and all will come knees with their arrogance.

[matthewparsons]

Hahahahaaa yes china, are you listening? Transparency = telling the truth = gain respect = yuan getting respected

[poodlescone]

If I were Russia, I would have the Russian state oil company get into the foreign exchange business. They can ask to be paid in Yuan for Chinese natural gas shipments while simulatneously exchanging their yuan with ruble domestically and remit the yuan to Chinese vendors in China. The foreign currency never leaves the home country.

[Shinobubu]

besides strict currency exchange the Yuan itself is worthless.

[crimmeydd]

As the dollar is too expensive for emerging markets as demonstrated by all their currencies collapsing.. the Ukraine war was devised to help these markets out with out being sued by us hedge funds by trading in other than us dollars. The trade restrictions being imposed also helps these markets out as China / Russia now need middlemen. It's exactly the same as Europe buying refined Russian oil from India.

[bostonbruinsfanboy]

Wanting to have "best of both worlds" is like saying "communism with democratic characteristics " 😂

[robman]

Surely this has been obvious all along. A mercantilist government like the Chinese which carefully manages the value of its currency to manage its desired trade outcomes and therefore achieve its long term goals is unlikely to see a freely floating exchange rate for its currency any time soon.

[kevinl]

many ways that can solve this problem, printing more yuan is one and they can also use digital currency, bitcoin or swapping goods