Russia is looking to add China’s yuan, India’s rupee, and Turkey’s lira to its wealth fund. The central bank disclosed its policy outlook for the coming three years, and noted that other currencies could also be added to the mix. Russia’s wealth fund held just under $200 billion in July. Loading Something is loading.
Russia’s central bank is looking to add China’s yuan, India’s rupee, and Turkey’s lira to its wealth fund, as Western sanctions keep the Kremlin’s dollars and euros frozen.
On Friday, the central bank disclosed its policy outlook for the coming three years, and noted that other currencies could also be added to the mix.
The diversification away from Western currencies could come via a budget mechanism that leverages excess income from energy revenue. Russia’s wealth fund held just under $200 billion in July.
Finance Minister Anton Siluanov has signaled previously that Moscow could look to alternative currencies to top up the fund. However, Bank of Russia Governor Elvira Nabiullina has cautioned against investing in volatile currencies.
The yuan has drawn particular interest from Russia since it invaded Ukraine amid a ramp-up in trade with China and the West’s shunning of commercial ties with Moscow.
Yuan-ruble currency trading hit a record last month, and President Vladimir Putin announced in June that China and Russia together are developing a new reserve currency with other BRICS countries.
China’s push to make the yuan a more dominant player on the world stage — to supplant the dollar, specifically — has accelerated in recent years. Still, economists have pointed out that the moves are primarily symbolic.
Deal icon An icon in the shape of a lightning bolt. Keep reading
More: MI Exclusive Central Bank Russia Yuan Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.