Iran Press/ Europe: On January 19, the Russian Central Bank will start making one-day deals with banks, selling them yuans for rubles. The Central Bank plans to use the instrument to limit the volatility of money market rates in case of imbalances arise. At the same time, the new instrument’s importance will grow due to rising payments in national currencrussia chinaies between Russian and Chinese companies.
Chief Economist at PF Capital Yevgeny Nadorshin points out that the Central Bank is currently unable to effectively use the dollar swap instrument throughout the market because of sanctions. When usual currency swaps cannot respond to the needs of the entire market, they need to be replaced and the yuan is quite appropriate for that purpose, the analyst noted.
The new instrument will expand the opportunities for banks and other financial market participants to satisfy their needs for currency liquidity, said the Director of Sistema Capital Management Company’s equity department Konstantin Asaturov. It will also become a positive step for both Russian and Chinese big businesses that have direct access to the exchange, as companies will be able to quickly and flexibly get rubles and yuans for contract payments, the expert added.
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