Russia's embrace of yuan cannot bring financial stability

Reliance on the Chinese currency brings new risks and complications

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The transfer of Russia's reserve assets into yuan does not eliminate geopolitical risk.  © Reuters

Nuriya Kapralou is an adviser to Oxford Analytica on Russian economics.

Russia's invasion of Ukraine prompted a massive wave of sanctions from the world's most developed nations. Moscow's access to international capital markets and financial infrastructure was severed and its external trade relations severely disrupted as the sanctioning states previously accounted for about half of its exports and imports.

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