The volume of yuan-denominated loans for banks inside Russia increased 7.7 times as of June 1, 2023, compared to February 1, 2022, according to the Bank of China subsidiary Bank of China, RBC reported on July 12.
According to the report, the level of interbank lending in yuan by subsidiaries of Chinese banks has been growing in the Russian market since the beginning of Russia’s special military operation. Thus, the Bank of China increased the volume of loans by 107 billion rubles ($1.2 billion).
A subsidiary of China Construction Bank in Russia increased the volume of lending between banks in yuan by 15.9 billion rubles ($0.2 billion), or almost six times over the same period.
The volume of interbank lending in Russia from the Bank of China increased by 3.3 times over the period – by 1.3 billion rubles ($0.01 billion). It is noted that in this way, Chinese banks increase the share of the yuan in the Russian market against Russia’s refusal to use the dollar and euro.
Earlier the head of the Central Bank of Russia Elvira Nabiullina said that a shortage of yuan liquidity in banks may be observed due to the uneven receipt of revenue in the Russian market.
Nabiullina noted that the Russian Central Bank has a tool for smoothing fluctuations in the yuan exchange rate – a swap within 10 billion yuan ($1.4 billion). The financier added that this limit has never been chosen even halfway so far.
Swap is an exchange of assets, in which after a certain period of time the assets are bought and sold again, but in reverse.
Source: Rossa Primavera News Agency