On Friday, Russia resumed the purchase and sale of foreign currency on the domestic foreign exchange market, starting with the yuan, indicating the growing importance of the Chinese currency to the Russian economy, AFP reported.

“The Bank of Russia will conduct domestic currency purchase and sale operations on the Moscow Stock Exchange in the yuan-ruble instrument,” the Russian Ministry of Finance said in a statement on Wednesday.

The restoration date is set for Friday, January 13.

Russia has banned all foreign exchange transactions since February 20, 2022, following the start of its offensive on Ukraine, triggering a barrage of economic sanctions and causing the Russian economy to collapse for several days.

Saving RMB

Essentially, Russia, through its central bank, would buy and hold renminbi, a currency it would then use to balance its federal budget in response to fluctuating hydrocarbon revenues.

It is not clear whether other currencies will join the yuan in the near future.

Before the military intervention in Ukraine, Russia mainly used dollars and euros to balance its budget. But Moscow is now racing to “liberate” its economy from the dollar so that it is less dependent on Washington, its diplomatic rival.

Moscow is trying to strengthen its ties with Asia, especially with China, trying to form a common front with Beijing against the West.

In a statement on Wednesday, Russia’s Finance Ministry said it wanted to “reduce the impact of volatile conditions in the energy market on the Russian economy and public finances”, suggesting that a return to foreign currency operations would help limit the impact of oil price caps by the G7 countries, the EU and Australia .

Between January 13 and February 6, 54.5 billion rubles (about $800 million) will be withdrawn from the foreign exchange market, the ministry said, to compensate for the drop in hydrocarbon revenues.

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