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Updated March 13th, 2022 at 22:11 IST

Russian Finance Minister alleges West pressuring China to restrict Moscow's access to Yuan

The United States and its allies have placed strong sanctions on Russia in response to Moscow's escalating aggression in Ukraine.

Reported by: Aparna Shandilya
Russia Ukraine war
Image: AP | Image:self
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The United States and its allies have imposed strong sanctions on Russia in response to Moscow's escalating aggression in Ukraine. Meanwhile, Russian Finance Minister Anton Siluanov on Sunday claimed that the West is pressuring China to restrict Moscow's access to the Chinese currency.

He remarked, "We know that part of our gold and foreign exchange reserves is in the Chinese currency, the yuan. And we see Western countries exert pressure on China in order to limit (Russia's) mutual trade with Beijing. No doubt, the pressure is being piled on in order to limit (Russia's) access to those reserves that we have in yuan.," Sputnik reported, citing Russian broadcaster Rossiya 1 on Sunday.

VTB offers 8% interest rates for Yuan 

He expressed the expectation that Russia's collaboration with Beijing will allow the two nations to retain their current level of cooperation, and not only maintain but even develop it in times when Western markets are closed. The Russian Finance Minister commented after Russia's state-run VTB Bank, which had previously been sanctioned by the United States, offered its customers the option of opening Chinese Yuan savings accounts with a maximum interest rate of 8%.

In light of rising dollar and euro exchange rates, the country's second-largest lender revealed in a statement that many clients are expressing interest in investing in other currencies, and the yuan is one of the most affordable and promising options for doing so. The state-owned VTB Bank has offered its customers the option of opening Chinese Yuan Deposits in Russian Banks' savings accounts, which pay up to 8%. The country's second-largest bank has been harmed by Western sanctions aimed at putting Russia in the most severe financial isolation possible as a result of its unprovoked aggression in Ukraine.

Furthermore, the Ruble has fallen 38% against Yuan and Dollar this year. Russia's central bank and sovereign wealth fund own a combined $140 billion (Rs10,74,628.80 crore) in Chinese bonds, according to a study published last week by ANZ, and the government may seek access to the assets owing to global sanctions. The sanctions have also drawn attention to China, which has a multibillion-dollar currency swap with Russia, to see whether it can provide Russia with a financial lifeline in order to defy Western efforts to cut Russia out of the global financial system.

(With inputs from agencies)

Image: AP

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Published March 13th, 2022 at 22:11 IST

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