Major players in the Chinese yuan exchange trading – Chinese banks that continue to work with Russia – are leaving the Moscow Exchange, which has come under US sanctions.
The Moscow Times writes about this regarding stock exchange statistics.
According to the newspaper, over the past two weeks, a noticeable reduction in the average size of the transaction was recorded at the Chinese currency trading: compared to May, this indicator decreased by 14%, to 1.89 million rubles, the lowest level since February 2023.
At the same time, the turnover of the over-the-counter yuan market increased sharply: in June, deals worth 1.98 trillion rubles were concluded there – 27% more than in May. At the same time, intraday turnover broke records three times, exceeding the bar of 200 billion rubles per day.
This means that the flow of yuan into Russia for the oil sold to China is moving from the exchange market to the over-the-counter market, following the dollar and the euro, whose trading was suspended on 13 June.
Market participants from China – the main suppliers of yuan liquidity – bear the risk of falling under secondary US sanctions, as Mosbourzh is included in the US Treasury’s SDN list with a ban on any transactions, explains Sovcombank analyst Mykhailo Vasiliev.
The Central Bank is already preparing for a scenario when exchange trading in the yuan will have to be stopped, just as it happened with the dollar and the euro. Most likely, Chinese banks will gradually wind down operations with the Moscow Stock Exchange and the National Clearing Center, which has also come under sanctions, a source close to the Central Bank told Bloomberg.
We will remind:
In June, the US significantly expanded the sanctions list against Russia, including hundreds of new items, including the Moscow Stock Exchange, which as a result was forced to announce the suspension of trading in the US dollar and the euro from 13 June.
As a result of the sanctions, the cash exchange rate for buying dollars and euros in the branches of many Moscow banks has increased sharply. On 12 June as of 9:30 p.m., the maximum value of orders for the purchase of the first currency was 120 rubles per dollar, and the second – 125 rubles per euro.
In some banks, at a certain moment, the rate of the American dollar reached 200 rubles.
According to the Central Bank of the Russian Federation, the official rate of the dollar was 89.02 rubles, and the euro was 95.74 rubles.
On 13 June shares of the Moscow Stock Exchange opened with a decrease of up to 15% against the background of the introduction of US sanctions.
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