That's really bad. Becoming harder to hit the 5.5% target
Chinese Economics Thread
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the 5.5% target was before Russia did their operations in Ukraine right? I don't think it takes to account of black swan events like these, anyways they should just revise it and focus on keeping the stability of economy, going forward a lot of countries will be busy securing food and commodities for their population, instead of buying non-essential goods.
Thats a loaded and hugely complex question. If you're saying Russia want to store the "value" of the oil/gas they sold to the EU in yuan, that means EU has to get yuan, which means the EU has to sell lots of stuff to China to get yuan. That's one issue. So say Russia has lots of Yuan from oil sales to EU and somehow got paid in lots of yuan, it won't really cause inflation if the PBOC handles it right since Russia's yuan's balance at the PBOC is only digital 1/0's so China's central bank can simply "destroy" the yuan Russia deposited with them and not release it back into circulation. When Russia wants to withdraw yuan down the line, the PBOC can simply "print" that amount back to credit the yuan account belonging the customer Russia is paying yuan to. Money is only digital ones and zeros and the central bank can print and destroy them as they please to fit the country's monetary policy.
No. It was after the war began which is why it is strange that they decided on that number when they knew that the global economy was going to suffer
I dont think this target can be met this year.
I finally figured it out after being just as confused as you are. It's to prove to OPEC that their Dollar and Euro and Yen will be seized. Putin finally convinced them to cut the West off with that single move.
Dollars must be held in the US unless it's in physical bills, but there's no practical way to move those bills to Russia. The US did ship something like $400 million to Iran at some point in an airplane, but they did that with military transport. The Russians would not be able to get their military plans over to the the US to pick up cash, and any other transport would probably be uninsurable and certainly the relevant agencies would try to make the plane disappear somewhere over the ocean.
I think they could have managed something like selling off almost all the dollars and buying euro and then moving the euro physically overland into Russia, but they didn't do that, mostly because they didn't anticipate the war would happen when it did. I think Putin more or less decided on a whim to roll into Ukraine when NATO called his bluff. He thought they would back down with a simple promise not to expand, but he was wrong.