The Chinese government is easing the control of the exchange rate of the Ruble - Z. TANVIR - Cryptocurrency Expert

The Chinese government is easing the control of the exchange rate of the Ruble

 The Chinese government is easing the control of the exchange rate of the Ruble, letting it fall more easily against the Yuan. Now, the Ruble is fluctuating in value against the Yuan at a 10% rate. Since the SWIFT Network cutoff, the Ruble has been performing dismally against the USD and Bitcoin (BTC).

Reef, a layer 1 Substrate based blockchain for DeFi, NFTs, and gaming, announced today

China Eases Ruble Exchange Rate Control to Evade Sanctions

The Chinese government has been staying neutral on the ongoing Russian invasion of Ukraine. As the world’s mega economies condemn and sanction Putin’s government, China has chosen to watch at the sidelines. It even did not vote during the UN meeting to sanction Russia. 

However,  it is showing signs of acceptance that the Ruble’s fall is imminent as its forex department has eased the control of the exchange rates of the Ruble. The country has moved to take this step to prevent any possible sanctions on its economy. It does not want to be mistaken for aligning with Russia as it has been a victim of Western sanctions too.

The country has doubled the margin with which the Ruble fluctuates against the Yuan. Now, the Ruble can gain or lose by 10% margin on the Yuan daily starting Mar. 11, 2022. The news was communicated yesterday by the China Foreign Exchange Trade System.

Even with favorable exchange rate control, the Ruble performs dismally against the Chinese Yuan. The sanctions against Russia are already being felt across the board, with all significant currencies outperforming it significantly. The Ruble has lost over 40% since being cut off from the SWIFT payment system. 

The Chinese multinational companies show no signs of pulling out of Russia. However, the country’s economists advise watching the matter from a safer distance. Now, the Chinese government is preparing to take advantage of the Moscow situation to strike better deals.

Next Post Previous Post
No Comment
Add Comment
comment url