Russia’s central bank announced that it had provided banks with 2.5 billion Chinese yuan ($346.25 million) equivalent to 31.8 billion roubles on Friday through currency swap transactions. Last week, the bank stated it would be adjusting the rates for currency swap operations involving the sale of yuan starting from March 25. It also disclosed that the maximum daily volume for currency swap operations would be increased to 20 billion yuan from 10 billion yuan on the first two and last two trading days of each month in an effort to mitigate excessive volatility. February 29 saw a peak in banks’ demand for yuan swaps, utilizing the entire 10 billion yuan limit available at the time. The central bank initiated swap transactions for both yuan and roubles in January 2023, with total currency swap operations amounting to 59.7 billion Chinese yuan last year, as indicated in a bank report. Additionally, the bank assured that its liquid reserve assets were ample to support financial stability and carry out necessary operations. While options for further diversifying reserve assets into currencies and financial instruments of “unfriendly” countries are constrained by associated risks, the bank emphasized the pivotal role of the Chinese yuan in shaping reserve assets. (Exchange rates: $1 = 7.2203 Chinese yuan renminbi, $1 = 92.5705 roubles)
