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Strangelove

Strangelove

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Yuan deposits replace dollar and euro in Russian banks​


The state lender is offering maximum interest rates for Chinese currency deposits to attract customers

Yuan deposits replace dollar and euro in Russian banks

© Getty Images / Andrii Yalanskyi

With Russia now officially cut off from both the US dollar and the euro, the state-owned VTB Bank has offered its clientele the opportunity to open Chinese yuan savings accounts that yield a maximum interest rate of 8%. The country’s second-biggest bank has been hit by the Western sanctions aimed at the total financial isolation of Russia over its war in Ukraine.

“In light of the rising dollar and euro exchange rates, many clients are showing interest in investing in other currencies, and the yuan is one of the most affordable and promising options for investing funds,” the bank said in a statement.

Existing customers are reportedly able to open deposits remotely on VTB Online with a minimum amount of 100 yuan ($16). At VTB branches, they can deposit a minimum of 500 yuan.
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According to the bank, the latest offer will be the most profitable alternative to deposits in other foreign currencies. The annual yield on a three-month deposit is 8% in dollars and 7% in euros.

Meanwhile, a six-month ruble deposit currently offers an annual percentage yield of 21%. VTB said that, over the past week, customers had invested over a trillion rubles ($15 billion) in traditional savings products.

Russian financial institutions have been placed under increasing pressure after Ukraine-related sanctions were introduced. The banks have had to turn to China to start using its UnionPay system for credit cards, after Visa and Mastercard announced the suspension of operations in the country.

“Some Russian banks can’t get access to other currencies, so yuan is probably the best other alternative,” Khoon Goh, head of Asia research at the Australia & New Zealand Banking Group, told Bloomberg.

“Still, the easiest way for Russia to raise yuan would be to receive yuan via trades. Russian banks’ clients who are exporters could sell to China and receive renminbi as payment.”
 
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solarz

solarz

Brigadier
siegecrossbow said:
How does translating Chinese versions of "Jai Hinds" help their cause exactly? Are people from Western countries going to fly to China enmass and start beating those people? I don't think so. More likely than this will fuel anti-Asian discrimination outside of China, resulting in more beaten grandmas/grandpas.
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The plan is to demonize China to pave the way for a kinetic conflict. This is literally the same playbook used against every country the US has invaded or bombed.
 
G

gelgoog

Lieutenant General
Registered Member
Overbom said:
Here is the "de-dollarisation" that Russia "achieved" with its energy exports to China. Suffice to say, he made a huge blunder by trusting the Europeans..
View attachment 85151
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Well I think Russia and China still expected the Europeans to take their own self-interest at heart. Yet the Europeans failed to do this and decided to do what amounts to economic suicide and foreign policy vassalage to the US. I take a different perspective when I look at that chart. That Russia and China managed to switch most of their trade from Dollars to Euros in two years. What makes you think they cannot do the same in their own currencies if they want to? Also, that chart is misleading. If you look at it you would think that "Other" and "Russian Ruble" trade decreased over that period of time. But the truth is total Russia-China trade increased massively in absolute value over that period of time. So while the relative fraction of trade in Yuan and Ruble "decreased" in the mix, the overall trade in both currencies should be slightly increasing in absolute values.
 
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