Friday, November 6, 2015

Russia becomes 4th country to open its bond market to Chinese Yuan

In just the past 30 days we have seen three major economies open up their bond markets to allow the sale of Chinese Yuan denominated debt instruments.  And on Nov. 6 we can now add a 4th country to this list as Russia announced their will begin selling RMB denominated bonds in their own markets beginning in 2016.
Russia already has several trade agreements with China that allow for direct bi-lateral trade in each other’s currencies, and as the largest energy producer in the world, this new move will have massive consequences for the petro-dollar as the growing internationalization of the RMB will lead more and more nations to bypass the global reserve in favor of direct energy purchases using the Yuan.

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