Yuan dominates Moscow Exchange as US sanctions reshape Russian currency market
Following the imposition of US sanctions, the Moscow Exchange has effectively become an exchange point where the Chinese yuan is the primary currency, reports The Moscow Times.
According to the Central Bank of Russia, the yuan now accounts for 99.6% of the currency trading market. The remaining 0.4% comprises friendly currencies like the Belarusian ruble and the Kazakhstani tenge.
Before the Russian invasion of Ukraine, the yuan constituted only 3.5% of currency transactions on the Moscow Exchange. Its share surged dramatically following the implementation of sanctions.
Trading in the Turkish lira, previously considered an alternative to the US dollar and euro, has also plummeted. Last year, monthly trading volumes for the lira reached 50 billion rubles, but they have now fallen by nearly 100 times.
Recently, the United States significantly expanded its sanction list against Russia, adding hundreds of new entities and individuals, including the Moscow Exchange. As a result, the exchange announced it would suspend trading in US dollars and euros from June 13.
Due to the impact of the sanctions, the cash exchange rates for buying US dollars and euros in many Moscow bank branches have surged dramatically. On June 12, as of 21:30, the highest bids for the first currency reached 120 rubles per dollar, and the second at 125 rubles per euro.
Shares of the Moscow Exchange opened on June 13 with a 15% drop following the imposition of US sanctions.