According to Russia, the foreign exchange market has already begun to favor the Chinese yuan over the euro and the dollar due to sanctions imposed by the West.
Russian the central bank said on Tuesday that the position of the dollar and euro as international currencies will weaken as a result of economic sanctions imposed by the west.
Western countries have frozen about half of Russia’s foreign exchange reserves, which totaled about $ 640 billion before the war in Ukraine.
According to the Central Bank of Russia, the decision to freeze and discussions on the possible confiscation of frozen funds could lead to actions by other central banks in Asia and the Middle East, for example.
“Growth in demand for gold can be expected as the US dollar and euro stand as reserve assets, the central bank said in a report on Tuesday.
According to the central bank, Western sanctions have led to an increase in the use of the Chinese yuan as an alternative to the euro and the US dollar in the foreign exchange market.
According to the news agency AFP, the central bank also hints at setting a negative deposit rate on dollar- and euro-denominated deposits. This would make it unprofitable to keep euros and dollars in accounts. Deputy Governor of the Central Bank of Russia Ksenia Judaeva said later that a potential negative deposit rate would only apply to corporate customers.
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