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Vadim Kovrigin: Investors actively buy yuan and expect direct access to Chinese exchanges


In March, the Russians bought Chinese yuan for 41.9 billion rubles. This is three and a half times more than in February, informs the Bank of Russia. Positive dynamics were recorded by specialists during exchange auctions. The share of the yuan-ruble currency pair in exchange turnover is 39%, the dollar-US ruble pair fell to 34%.

“Russia’s course to the East, of course, is also manifested in the volume of trade in the foreign exchange markets, as well as in cash turnover. In the eyes of the Russians, the American and European currencies have become more “toxic” – and this is natural. The Central Bank of Russia has introduced certain restrictions on actions with accounts and cash movements at bank cash desks. Commercial banks only have the ability to sell dollars and euros if they arrived at their cash desks after April 9, 2022. There are no restrictions on other currencies. A significant part of commercial banks have introduced commissions for customers who hold dollar and euro funds in accounts, – notes the head of the regional branch of the Growth Party in the Lipetsk region, associate professor at the Russian University of Economics. GV Plekhanov, expert of the Russian-Chinese Committee for Friendship, Peace and Development Vadim Kovrigin. – Investments in American and European currencies have become more dangerous for citizens. A significant part of the assets held by Euroclear is still blocked. The Russian regulator has introduced serious restrictions on the stock market for unqualified investors in terms of investing in assets from hostile countries. At the same time, investment opportunities in Chinese yuan have increased significantly – some Russian companies have started issuing bonds in Chinese currency, and Chinese companies have appeared on the St. Petersburg Stock Exchange. More often than not, however, their stocks are denominated in Hong Kong dollars, but they have shaken the position of dollar investments. Moreover, investments in the assets of friendly countries most often have no restrictions for non-qualified investors.

At the beginning of October 2022, on the Moscow Stock Exchange, the yuan trading volume indicator for the first time became a leader against the dollar.

“The trend of increasing yuan trading volume will be even stronger throughout 2023. However, keep in mind that there are limiting factors. The yuan has not yet become a currency fully-fledged global market, such as the dollar. Russian investors do not have direct access to the Chinese stock exchange. We hope that this situation will be corrected,” Kovrigin summed up.

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