Ruble-renminbi trading volumes have soared amid Western sanctions
Russia is planning to resume local bond sales after a six-month pause, Bloomberg reported on Wednesday. The Kremlin also reportedly wants Chinese yuan-denominated debt to help the recovery of the Russian market.
The report highlighted that ruble bonds, also referred to as OFZs, could potentially be back on the market in the second half of September. Meanwhile, the debut of yuan bonds on the Russian market won’t happen until next year, it said.
“A long-mulled plan to debut Chinese currency notes locally is being dusted off with fresh urgency as yuan trading volumes surge after sanctions shut Russia out of its traditional markets in the US and Europe,” an unnamed source told the outlet.
According to Bloomberg data, trading volumes between the Russian ruble and the Chinese currency have grown 40-fold since the start of the year.
READ MORE: Yuan overtakes dollar on Moscow Exchange
“With hundreds of millions of dollars coming into government coffers from energy revenue each day, the government has no need to borrow now, and sales of yuan debt would serve solely as a benchmark for companies looking to tap the market,” the source was quoted as saying.
Russia’s biggest gold miner, Polyus and aluminum giant Rusal International have reportedly already started transacting in the yuan.
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