The Central Bank of Russia will resume foreign exchange transactions in yuan

In a written statement from the Central Bank of Russia, it was stated that as of January 13, the bank will resume foreign exchange transactions in the domestic market.

Pointing out that foreign exchange transactions will be made in yuan, it was noted that trades will be made at equal rates on trading days in order to reduce the effect on the ruble exchange rate.

In its statement on the subject, the Russian Ministry of Finance stated that the decision to restart foreign exchange transactions is aimed at increasing the stability and predictability of domestic economic conditions.

In the statement, which pointed out that the budget revenues in oil and natural gas are expected to be at the level of minus 54.5 billion rubles this month, it was noted that foreign exchange will be sold in January and a fund worth 54.5 billion rubles has been allocated for this.

After the decision, the dollar/ruble parity fell by 1.48 percent to 68.7, while the euro/ruble parity fell 1.2 percent to below the 74 level.

Russia is moving its economy away from the dollar

The Central Bank of Russia decided to cease its operations in the foreign exchange market in February 2022 due to the sanctions imposed due to the war in Ukraine.

While banks and companies in the country are moving away from the dollar due to sanctions, the use of friendly countries’ currencies, especially the yuan, is becoming widespread in trade.

The Russian Finance Ministry, in a statement last month, increased the maximum share limit of the yuan in the National Welfare Fund from 30 percent to 60 percent, and the maximum share limit of gold from 20 percent to 40 percent.