Russia's central bank said it has no better options than the Chinese yuan for its foreign exchange reserves two years after the Kremlin's war on Ukraine and subsequent seizures of its international assets.
The Central Bank of Russia wrote in its annual report released today that there are limited alternatives to the Chinese currency for use in foreign exchange reserves because the financial instruments of countries friendly to Russia involve enormous risks.
The report explained: The exchange rates of these currencies are highly volatile, the markets suffer from low liquidity, and in a number of these countries there are restrictions on the movement of capital, which constitutes an obstacle to their use. These factors predetermine the main role of the Chinese yuan in the formation of foreign exchange reserve assets.
