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Jan 10 - Russia Buys Quarter of World Yuan Reserves in Shift From Dollar


 


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 3 months ago '15        #1
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Jan 10 - Russia Buys Quarter of World Yuan Reserves in Shift From Dollar
 

 
Russia’s central bank dumped $101 billion in U.S. holdings from its huge reserves, shifting into euros and yuan last spring amid a new round of U.S. sanctions.

The central bank moved the equivalent of $44 billion each into the European and Chinese currencies in the second quarter, according to a report published on late Wednesday by the Bank of Russia, which discloses the data with a six-month lag. Another $21 billion was invested in the Japanese yen.


The Chinese currency accounted for 15 percent of total holdings at the last reading, up from 5 percent at the end of the first quarter, according to the report. That puts Russia’s yuan share at about ten times the average for global central banks, with its total holdings of the currency accounting for about a quarter of world reserves in yuan, according to International Monetary Fund data. Morgan Stanley estimated Russia was the main buyer of Chinese bonds last year.

“Russia is making a strategic shift in its reserves towards holding fewer dollars and more a*sets in other currencies,” said Benn Steil, director of international economics at the Council on Foreign Relations in New York.

The data reveal a dramatic acceleration in a policy Russia has been pursuing for several years of reducing exposure to a*sets that could be affected by U.S. restrictions. Tough sanctions on major Russian companies in early April hammered the ruble and spurred fears that more restrictions could follow, such as measures to cut Moscow off from global payment systems. Russian holdings of U.S. Treasuries dropped by about $81 billion in May and June, according to U.S. data.

Russia isn’t alone in its bid to reduce reliance on the world’s reserve currency amid increasing attempts by Washington to use economic leverage for geopolitical ends. In a deepening trade war with America, China sold a large portion of its U.S. Treasury holdings last year and officials in Europe put forward proposals to increase the use of the euro in regional transactions.

‘Ditching the Dollar’
“We aren’t ditching the dollar, the dollar is ditching us,” Russian President Vladimir Putin said in November. “The instability of dollar payments is creating a desire for many global economies to find alternative reserve currencies and create settlement systems independent of the dollar. We’re not the only ones doing it, believe me.”

The central bank data show Russia also cut the share of its reserves held in the U.S. to just 10 percent of the total from 29 percent at the end of March, suggesting some of the remaining dollar a*sets are now held in other countries. This aligns with data compiled by the U.S. Treasury, which shows an increase in American bond holdings in Belgium and the Cayman Islands last year.

Russia’s reserves are among the 10 largest in the world, totaling $458 billion at the end of June 2018. The data suggest Russia accounted for 90 percent of the inflows into the Chinese bond market in the first half of 2018, analysts at Morgan Stanley wrote in a research note published Thursday.

The shift has reduced the credit quality of Russia’s reserves, with the share of AA-rated a*sets dropping to 27 percent from 43 percent, according to the central bank report. Yields were higher on the yuan holdings, at 3.2 percent versus 0.35 percent for dollar a*sets.

“In a purely economic sense, the cost benefits of a massive shift to the the yuan aren’t clear,” said Elina Ribakova, a fellow at the Bruegel think tank in Brussels. “But it makes sense if you take geopolitics into account.”
visit this link https://www.bloomberg.com .. ollars-in-2018
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15 comments for "Jan 10 - Russia Buys Quarter of World Yuan Reserves in Shift From Dollar"

 3 months ago '10        #2
Big Louie Guwop 163 heat pts163
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Well, better start learning how to speak Chinese
They'll own us soon
+3   

 3 months ago '13        #3
PsychoCyber 29 heat pts29
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 Big Louie Guwop said
Well, better start learning how to speak Chinese
They'll own us soon
fu*k nah son we gon be aight
+2   

 3 months ago '14        #4
zayan 11 heat pts11
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 Big Louie Guwop said
Well, better start learning how to speak Chinese
They'll own us soon
Man all that chinging and changing finna hurt my mouth I don’t know how all my asian brothers and sisters do it
+2   

 3 months ago '04        #5
nwo504 32 heat pts32
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 3 months ago '12        #6
FrescoB 80 heat pts80
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+1   

 3 months ago '18        #7
danneywilliams 48 heat pts48
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 zayan said
Man all that chinging and changing finna hurt my mouth I don’t know how all my asian brothers and sisters do it
Don't make me get my man China Mac on you and punk you like he did Lil Pump.

 3 months ago '18        #8
PAPLE 
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When they coin the phrase 'Petro-Yuan', then its time to start worrying 'Murica.

Till then it's peanuts and chump change.
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 3 months ago '09        #9
wettems35 
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 zayan said
Man all that chinging and changing finna hurt my mouth I don’t know how all my asian brothers and sisters do it
What you say homie?


[pic - click to view]


 3 months ago '17        #10
Rule 336 104 heat pts104
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 zayan said
Man all that chinging and changing finna hurt my mouth I don’t know how all my asian brothers and sisters do it
@
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 3 months ago '14        #11
zayan 11 heat pts11
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 Rule 336 said
@
:(

That was racist ?

你为什么要这样对我啊?

 3 months ago '11        #12
Deuterion 2 heat pts
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 PAPLE said
When they coin the phrase 'Petro-Yuan', then its time to start worrying 'Murica.

Till then it's peanuts and chump change.
There ain’t gonna be a petro-yuan...fossil fuels are dying. China gonna be the world’s number one provider of renewable energy and while the US runs around the world punking people over oil. Meaning China is preparing for the future while the US is being greedy and focusing on the now.
+2   

 3 months ago '18        #13
PAPLE 
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 Deuterion said
There ain’t gonna be a petro-yuan...fossil fuels are dying. China gonna be the world’s number one provider of renewable energy and while the US runs around the world punking people over oil. Meaning China is preparing for the future while the US is being greedy and focusing on the now.
There could be a 'petro-yuan' (hypothetically), there is still about 60-100 years in fossil fuels left on the Earth for us to consume. a*suming we stay close to the current track of how much ff the human race burns per year. In that time China could take over the Petro$ and that's when Americans should be concerned.

I agree with you that China (and also India) are leaps and bounds ahead of the rest of the world though.
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 3 months ago '11        #14
Deuterion 2 heat pts
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 PAPLE said
There could be a 'petro-yuan' (hypothetically), there is still about 60-100 years in fossil fuels left on the Earth for us to consume. a*suming we stay close to the current track of how much ff the human race burns per year. In that time China could take over the Petro$ and that's when Americans should be concerned.

I agree with you that China (and also India) are leaps and bounds ahead of the rest of the world though.
Yeah when China and Russia or even BRICS have the US and the Petrodollar in a check mate it’ll be guaranteed WW3.

 3 months ago '07        #15
justblazedown3 
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 Big Louie Guwop said
Well, better start learning how to speak Chinese
They'll own us soon
Where you been they already do. Who owns the most US debt? CHINA and when the US and china align to become the alliance this is the future......


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 3 months ago '15        #16
BuyGold 3103 heat pts3103 OP
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 Deuterion said
Meaning China is preparing for the future while the US is being greedy and focusing on the now.
facts
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