Russian banks say they've run out of yuan as Chinese firms pull away from the nation
Russian banks say they've run out of yuan as Chinese firms pull away from the nation
Payment scuffles between Russian companies and Chinese banks have escalated in recent weeks, with Chinese firms pulling back amid fear of sanctions.
- Russia's yuan reserves are nearly depleted due to Chinese banks' fear of US sanctions.
- Lenders have urged Russia's central bank to address the yuan deficit, causing the ruble to drop.
- China's hesitance stems from US threats of secondary sanctions over Russia's Ukraine war financing.
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what happens when they run out? do they have to start buying more yans from somewhere else?
Buy them with what? No one want their rubles 😁and they haven't enough "stuff" to sell lol.
India only cares about India, so maybe they can seek them more LNG or oil. Maybe Rupies are the new Yuan lol
yes india is set to take them for all the oil they can, at extremely reduced prices, which isn't good for russia, but great for india.
When they run out then they can't purchase goods from China.
Well, they can, but the cost will get more volatile... super oversimplified, it's the difference between drinking at home booze you bought at wholesale prices and keeping a running tab with a local bar/pub. You'll be subject to the bar and any price changes they (read: the currency markets) want to make.
Theres no such thing as bartering between nations, in order to buy from them requires first selling something or having a creditor.
I'm assuming they have nothing more to sell so they'll just lose important wartime supplies and general goods access.
but if they run out before they have paid off the money, dont they have to give it back in some way? At least this sounds like it should have more serious consequences than that.
Its very serious to lose important wartime supplies access. I imagine the general populous isn't happy either, with goods becoming more restricted than even the USSR.
They start using other currencies they have. At some point it will be rubbles. But first it will be currencies their population has.