- Russia’s yuan reserves are nearly depleted due to Chinese banks’ fear of US sanctions.
- Lenders have urged Russia’s central bank to address the yuan deficit, causing the ruble to drop.
- China’s hesitance stems from US threats of secondary sanctions over Russia’s Ukraine war financing.
what happens when they run out? do they have to start buying more yans from somewhere else?
Buy them with what? No one want their rubles 😁and they haven’t enough “stuff” to sell lol.
India only cares about India, so maybe they can seek them more LNG or oil. Maybe Rupies are the new Yuan lol
yes india is set to take them for all the oil they can, at extremely reduced prices, which isn’t good for russia, but great for india.
When they run out then they can’t purchase goods from China.
Well, they can, but the cost will get more volatile… super oversimplified, it’s the difference between drinking at home booze you bought at wholesale prices and keeping a running tab with a local bar/pub. You’ll be subject to the bar and any price changes they (read: the currency markets) want to make.