How to pay in rubles with Chinese partners

[sadiksojib35]

Due to US sanctions, trading in dollars and euros has been suspended on the Moscow Exchange. Now, transactions with them are conducted on the over-the-counter market, and the Chinese yuan has become the only highly liquid foreign currency available for trading. But settlements in yuan have their drawbacks.

Sometimes Chinese banks refuse to cooperate with Russia, and the yuan itself is subject to strong fluctuations due to its dependence on exports and imports. Alexander Eliseev, an expert in international payments and banking at X6 Group, explains how to pay in rubles.

Subscribe to RB.RU in Telegram
Content:

What influences the yuan exchange rate on the nigeria whatsapp phone number Moscow Exchange
Which major Chinese banks work with Russia
Is it possible to pay in rubles instead of yuan?
How to organize ruble payments to China
What are the prospects for settlements through small regional banks in China?


What influences the yuan exchange rate on the Moscow Exchange
The United States imposed blocking sanctions against the Moscow Exchange on June 12. According to the exchange rate on June 11, 2024, one Chinese yuan cost 12.25 rubles, on July 19 - 11.97 rubles.

The yuan to ruble exchange rate on the Moscow Exchange reflects supply and demand for the Chinese currency in Russia. Due to the fact that arbitrage operations have become difficult, exchange rates may differ from global trends.

The current exchange rate depends to a large extent on official foreign trade operations. Therefore, the strengthening of the ruble only indicates that imports are lagging behind exports.

In addition to the difference between supply and demand on the domestic market, the weakening of the yuan was influenced by the regulation measures of the Central Bank of Russia. The situation is complicated by the fact that liquidity on the market is currently provided not by banks, but by trading organizations.
RB.RU recommends the best providers of digital solutions for your business - follow the link
In the first week after the sanctions, the ruble strengthened by 9%, when the old rules for selling foreign currency earnings were in effect. They assumed the repatriation of 80% of earnings and the sale of 90% of them on the domestic market. Since then, the government has softened these requirements several times: on June 20, it lowered the threshold for mandatory sale of foreign currency earnings by exporters to 60%, and on July 13, to 40%.

On the topic. Legal entities have begun to open currency accounts in yuan more often