Central Bank of Russia Disposes of Yuan Worth $47 Million in January
- Shams ul Zoha
- January 17, 2023
- 6:21 pm
WHAT YOU SHOULD KNOW
- The Russian Central Bank sold the equivalent of almost $47 million of Chinese yuan on January 13 in order to purchase roubles.
- The Finance Ministry and Central Bank announced their plans to sell 3.2 billion roubles’ worth of yuan each day starting in January.
The central bank of russia announced on Tuesday that it had sold the equivalent of almost $47 million in Chinese yuan on January 13 in order to purchase roubles. This was done in order to compensate for the budget shortfall caused by the decreased revenues from oil and gas, and was done through intervention in the foreign exchange markets.
Last Wednesday, the finance ministry and central bank of Russia announced their plans to sell 3.2 billion roubles’ worth of yuan each day starting in January.
In Russia, the budget rule states that if the revenue from oil and gas decreases in Moscow, the government will sell off foreign currency reserves to fill the gap in the budget that is created by the lack of roubles.
If the finance ministry experiences an increase in oil and gas revenues, it will use the extra roubles to purchase yuan in order to bolster their foreign exchange reserves.
The Russian Finance Ministry has proposed to sell 54.5 billion roubles worth of yuan, which is equivalent to almost $800 million, in order to cover the budget deficit for the month of January.
As Russia works to distance itself from “unfriendly currencies” due to sanctions, it has been engaging in more and more transactions with yuan in an effort to bring its economy closer to China.
The value of one US dollar is 68.45 roubles
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