China's Yuan is replacing the Dollar and Euro in Russian Bank Accounts

Share Us

851
China's Yuan is replacing the Dollar and Euro in Russian Bank Accounts
09 Apr 2022
6 min read

News Synopsis

According to recent reports, the Chinese currency, Yuan is sharply increasing in clients’ accounts of the Russian Banks. This is due to the severe sanctions imposed by the West. This has limited the access to the dollar and Euros. As per the survey done by Russian financial daily Kommersant, in the month of March, major banks in Russia have witnessed a massive surge in funds being converted from dollars and euros into yuan. New accounts are also being opened with yuan. The volume of account funds in yuan has increased eight times in the Tinkoff Bank. MTS Bank saw a four-fold jump, and the Bank Saint Petersburg's increased by 3.5 times.

MTS Bank told Kommersant, "Under the conditions of restrictions, many companies see settlements in yuan as more stable and predictable.” Several companies involved in wholesale trade are also switching to settlements in yuan. Yugar Aliyev, a Russian finance consultant said: “The yuan will not only replace the dollar in settlements with China but also become a more reliable means of international settlements for Russian companies." However, the dollar and euro remained dominant worldwide.

TWN In-Focus