Yuan lands major success against Euro

Discussion in 'Forex' started by earth_imperator, Jul 25, 2022.

  1. "
    24 Jul, 2022 10:21
    Yuan lands major success against euro
    The Chinese currency outperformed the euro by volume of trading, but comes in second after the US dollar
    [​IMG]
    © Getty Images / Thomas Trutschel

    The Chinese currency the yuan outperformed the euro by trading volume on the Moscow Exchange (MOEX) for the first time on record, trading data from Friday shows.

    According to the data, the trading volume of the Chinese currency on Friday was 52.8 billion rubles ($908 million). The euro trading volume, meanwhile, barely exceeded 41 billion rubles ($705 million). It also was the second consecutive day when the volume of yuan trading on MOEX exceeded 50 billion rubles, while in the first half of July the yuan trading volume had averaged 30 billion rubles ($516 million) a day.

    The yuan failed to overtake the US dollar, however, with Friday’s greenback trading volume reaching 124.7 billion rubles ($2.1 billion).

    Analysts suggest the growth in the yuan’s trading volume on MOEX stems from banks’ devaluation actions and speculation on currency interventions, which may take the form of yuan purchases as part of Russia’s much anticipated new budget rule.

    [​IMG]READ MORE: Trade among BRICS countries soaring – data

    The rule has not yet been approved, but the Bank of Russia has already allowed non-resident banks from “unfriendly” countries to trade one foreign currency in exchange for another on Russian foreign exchange markets. The volume of dollar-yuan transactions on MOEX, consequently, set a new historical record on Thursday, reaching 38.4 billion rubles.

    However, Western anti-Russian sanctions also contribute to the yuan’s appeal, analysts say. Due to sanctions, bank clients are seen gradually switching from currencies of “unfriendly” countries, primarily the US dollar and the euro. Nikita Silkin, head of the online broker BCS Global Markets, told newspaper Kommersant that the trend is obvious, both among individuals and legal entities, with importers forced to switch to conducting transactions in currencies that are not influenced by sanctions. Another expert, Viktor Tunev, chief analyst of Ingosstrakh-Investment Management Company, told the news outlet that the interest of Russian residents in the yuan is natural, as buying dollars or euros is currently both risky and costly.

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  2. TheDawn

    TheDawn

    So why is yuan still tethered to the euro and is only 1/7 of euro? LOL If Yuan is outperforming euro, it should be more expensive than euro. You can't become the world's reserve currency and still want to export cheap by keeping your currency cheap relative to others? Eventually something is going to give.
     
  3. VicBee

    VicBee

    Wow, amazing! So... what's the point?
     
  4. The above argumentation of this TheDawn idi is really the silliest one can come up in such a currency context.
    I've this idi now in my ignore list...
     
  5. Overnight

    Overnight

    So the moment you cannot decide on how to argue a point with another poster, you place them on /ignore.

    That is sheer cowardice. Face your fate and refute! Discuss! Argue! That's what a BBS is for! Not to just post shit and run away when you disagree!
     
    VicBee likes this.
  6. Hey @Overnight, I simply don't want to waste my precious time on "discussing" with such "idiots with no clue" :D
    Of course you can do as you like :)

    And: what was the reason for introducing this "ignore" feature in this forum software in the first place?... :)
     
  7. Overnight

    Overnight

    There is incredible debate on this feature in the "feedback" section of ET. The majority of it is about it's faults and inefficiency. My mind at this point is do away with the whole thing, all together, or implement certain features that will make it less controversial.