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18 September 15:09
Russian banks have sharply reduced the volume of loans in yuan
09:33; 12 August 2024 year
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In June of this year, banks in Russia sharply reduced lending to businesses in foreign currency, RBC reports with reference to the statistics of the Central Bank.
For example, it is known from the statistics of the Central Bank that in June of this year the volume of corporate loans in foreign currency fell by 27.6% to 34.99 billion yuan. If we exclude the seasonal decline in lending in January, in absolute terms, the June volume of foreign currency loans was the lowest since November 2023. The reason for the reduction in lending is considered to be that banks have reduced the issuance of foreign currency loans due to the deterioration of the situation with yuan liquidity in the Russian market. In particular, banks from China have been operating in Russia with much greater caution over the past year in order not to fall under secondary US sanctions.Many financial transactions between the PRC and the Russian Federation have to be carried out through third countries. This reduces the volume of yuan inflows to Russia. In addition, transaction costs are rising sharply, and along the way, it is less profitable for individuals and legal entities to place funds in yuan in banks against the background of high rates on ruble deposits.
