Rouble Reaches Year-Long Low Against Yuan Amid Currency Trade Shifts

The Russian rouble has reached its weakest level against China's yuan in nearly a year, influenced by reduced foreign currency sales and the upcoming U.S. presidential election. While the rouble shows some strength against the dollar, Western sanctions have intensified the yuan's role as the primary traded foreign currency in Russia.


Devdiscourse News Desk | Moscow | Updated: 05-11-2024 12:47 IST | Created: 05-11-2024 12:47 IST
Rouble Reaches Year-Long Low Against Yuan Amid Currency Trade Shifts
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The Russian rouble has slid to its lowest point against China's yuan in nearly a year, influenced by reduced foreign currency sales by Russian exporters and the looming U.S. presidential election on November 5. Data from LSEG indicated that by 0707 GMT, the rouble had decreased by 1.3% to 13.73 against the yuan, marking its weakest position since October 9, 2023. In contrast, the rouble showed a slight increase of 0.3% against the dollar, reaching 98.10.

Western sanctions, introduced on the Moscow Exchange and its clearing agent, the National Clearing Centre since June 12, have halted all trade in dollars and euros at the MOEX. Consequently, the yuan has emerged as the predominant foreign currency traded in Russia.

The shift has rerouted dollar and euro trades to the over-the-counter (OTC) market, complicating access to price data. The one-day rouble-dollar futures, which remain traded on the Moscow Exchange, serve as a reference for OTC market rates. The central bank's official exchange rate, based on OTC data, was recently established at 97.55 to the dollar.

(With inputs from agencies.)

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