RateCaptain
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
Subscribe
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us
No Result
View All Result
RateCaptain
No Result
View All Result
Home Economics

Amid heavy sanctions, will China use its digital currency to save Russia?

Rate Captain by Rate Captain
March 14, 2022
in Economics, News
Reading Time: 2 mins read
A A
0
Share on FacebookShare on TwitterShare on WhatsappShare on Telegram

In recent years, China and Russia have attempted to lessen their reliance on Western financial institutions, technology, and markets, motivated by their leaders’ shared aim to protect themselves from economic coercion by the West. 

This mutual suspicion of the US and its allies has deepened economic ties, with China being Russia’s single largest trading partner. In an isolated Russia, the Chinese could now be Russian President Vladimir Putin’s lifeline, reducing the impact of Western sanctions for his invasion of Ukraine.

AlsoRead

IMF- Global Economy growth is expected to be slow in 2023

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

Breaking: Nigeria’s Inflation surprisingly plunged to 21.34% in December 2022

China’s digital yuan payment system might be an alternative for the Swift system, which is being utilized in sanctions against Russia. 

In crises, both China’s e-CNY and the Cross-Border Interbank Payment System (CIPS) can facilitate international transactions and circumvent similar sanctions. However, the question reminds of china would use its digital currency to help the Russian economy. 

What experts are saying 

Fintech consultant and Author, Richard Turrin, told CBNC that China’s digital currency would not be used as a bailout for Russia. 

He said, “the last thing that China wants to do with its new baby- the China digital currency (Yuan) is to put it into the mud while in the sanctions-busting game. The digital Yuan is a baby in the sense that it has not been launched domestically and has not even had any testing on the international basis.”

He believes that the digital yen has the power to would shine the  dollars., “The digital Yuan will slowly surpass the dollar in few years to come as China is the largest trading country and the Yuan will be used when buying from China,” he said. 

Citic Securities analyst Ming Ming wrote in a research note, “We believe that it is necessary and urgent to vigorously promote yuan internationalisation, especially the development of the CIPS system and the digital yuan”. 

While the market draws attention to China’s yuan payment and settlement system, which has 75 direct participants including Citibank, HSBC and Deutsche Bank, and 1,205 indirect participants, any entity dealing with Russia-linked businesses could be subject to sanctions.

“One distinctive characteristic of digital yuan is that payment and settlement happen concurrently. This will help reduce reliance on bank accounts and bypass financial intermediaries in some scenarios,” Ming said.

What you should know about the China digital currency 

According to Mu Changchun, director-general of the central bank’s Digital Currency Research Institute, the Chinese CBDC is being used to make 2 million yuan ($315,000) or more in payments each day at the Winter Olympics. 

The digital yuan is being tested in cities across China, including Shenzhen, Suzhou, Xiongan, Chengdu, Shanghai, Hainan, Changsha, Xian, Qingdao, and Dalian, in addition to the Winter Olympics. 

The PBOC later stated that the digital yuan had 261 million unique users at the end of 2021, with transactions totalling 87.5 billion yuan ($13.78 billion). In addition, the digital yuan is now accepted by almost 8 million merchants.

 

Previous Post

Diesel Price Hike threatens the Manufacturing Companies in Nigeria, Says MAN

Next Post

FG shuts down GoCash, Kashkash, SpeedyChoice, Easy Moni, EasyCredit, and Others

Related News

IMF- Global Economy growth is expected to be slow in 2023

IMF- Global Economy growth is expected to be slow in 2023

by Rate Captain
February 1, 2023
0

The International Monetary Fund on Monday 31 January 2023 published its latest economic growth projections for 2023 and 2024 in...

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

Breaking News: All flights cancelled as aviation handling company strikes indefinitely.

by Rate Captain
January 23, 2023
0

The staff of the Nigerian Aviation Handling Company Plc (NAHCO) embarked on an indefinite strike action, which led to the...

Nigeria’s Inflation Climbs to 19.6% in July 2022

Breaking: Nigeria’s Inflation surprisingly plunged to 21.34% in December 2022

by Rate Captain
January 16, 2023
0

The Nigeria inflation rate in December 2022 eased to 21.34% compared to November 2022 headline inflation rate which was 21.47%....

Ghana’s Inflation Rate Surges 33.9%, the highest in 21 Years

Inflation Will Defy CBN’s Monetary Policy Efforts, To Hit 21.6% – Cape

by Rate Captain
January 13, 2023
0

Cape Economic Research and Consulting has predicted a surge in Nigeria’s inflation amidst the Central Bank of Nigeria’s Monetary tightening...

Next Post

FG shuts down GoCash, Kashkash, SpeedyChoice, Easy Moni, EasyCredit, and Others

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Recommended

Airtel Africa’s nine-month turnover hits $3.9billion.

Airtel Africa’s nine-month turnover hits $3.9billion.

February 3, 2023
Charges on cash transactions skyrocketed by POS agents.

Charges on cash transactions skyrocketed by POS agents.

February 3, 2023

Popular Story

  • CBN reduces over-the-counter withdrawals to N100k, N500k per week for individuals, companies

    CBN Directs Banks to Start Paying New Naira Notes Over the Counter.

    0 shares
    Share 0 Tweet 0
  • MTN Nigeria Annual profit hits N361.5 billion.

    0 shares
    Share 0 Tweet 0
  • Shell’s annual profit hits $39.9 billion.

    0 shares
    Share 0 Tweet 0
  • Charges on cash transactions skyrocketed by POS agents.

    0 shares
    Share 0 Tweet 0
  • Naira depreciates to N749/$ in the parallel market.

    0 shares
    Share 0 Tweet 0
RateCaptain

RateCaptain

We bring you the most accurate in new and market data. Check our landing page for details.

  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

No Result
View All Result
  • FX Rates
  • Money Market
  • Cryptocurrency
  • Commodities
  • Corporates
  • Contact Us

Copyright © 2022 RateCaptain - All rights reserved by RateCaptain.

?>