Russian banks say they've run out of yuan as Chinese firms pull away from the nation
Russian banks say they've run out of yuan as Chinese firms pull away from the nation
Payment scuffles between Russian companies and Chinese banks have escalated in recent weeks, with Chinese firms pulling back amid fear of sanctions.
- Russia's yuan reserves are nearly depleted due to Chinese banks' fear of US sanctions.
- Lenders have urged Russia's central bank to address the yuan deficit, causing the ruble to drop.
- China's hesitance stems from US threats of secondary sanctions over Russia's Ukraine war financing.
Sanctions work.
This is what frustrates me so much about people in the US arguing against supporting Ukraine. At the end of the day, while China might be willing to help Russia, the US is by far it's largest customer. Add to that China's own economy is contracting, and supporting Ukraine against Putin, along with the severe sanctions that have been in place, is the smartest most cost effective way of hopefully removing him from power. I have a co-worker who got out of Russia a little over a year ago, and he said it was pretty bad before he and his family left. Unfortunately, it's a slow process because the goal is to get the Russian people to oust him. We all know that's not going to happen at the ballot box, so all that's left is the people overthrowing their leaders. Things have to get pretty dire before a population like Russia's gets to that tipping point.
This is a marathon. The main thing is keeping Ukraine strong and able to defend itself. I'm really liking the offensives into Russian territory they've been carrying out. I just want them to remember a defensive position is easier to maintain/win than an offensive one. In other words, don't try to go to far into Russia. Way way too many great generals have made that mistake!
US is by far it’s largest customer
That's true and there's also more to it.
The US is China's largest single trading partner but China has many many trading partners.
May nations now trade or at least negotiate in blocks. Both ASEAN and the UE, as blocks, do more trade with China than the US does. When it comes to individual nations the US isn't as far ahead as it might seem. Russia, Vietnam and Taiwan together trade more with China than the US does, despite having a combined GDP that's a tiny fraction of the US.
The key issue is that China has been working really hard to make itself less dependent on the US. They still have a way to go but they're much less vulnerable than they were a few years ago.
Not fast enough. I agree they work, but often times it hurts all the people, and the ones that have "say" often are slow to help their fellow people.
Like a constrictor, squeezing everywhere, untill you can't breathe.
See: Cuba, Venezuela, Iran, North Korea...
Actually sanctions don't work at all, what's happening here is the result of a war of attrition.
Cuba is stubborn and resource efficient, Venezuela is decently resource rich and the sanctions are relatively new, Iran still has some trade partners and is decently rich in resources, North Korea is propped up by China and is kind of an anomaly. Sanctions are rather long term and take certain conditions to work properly, Russia fits those conditions despite them theoretically being resistant to sanctions.
I guess the financial market is being reduced to ruble
Maybe they shouldn't have invaded Ukraine.
the question is if they could still pull out of the war
Putin’s fragile ego won’t allow that.
Ukraine doesn't have the resources to start some weird revenge conquest, given that their allies fear MAD.
Hot take:
China has lost all faith in Russia. Is reorganizing to reflect that.
And maybe is even considering Taiwan's advice, lol.
What's "Taiwan's advice"? What did Taiwan tell China about Russia?
Taiwan made a sarcastic comment.
Essentially calling out their policy of "Territorial Integrity", they told them to take back land they gave to Russia
Hotter take:
China is on the brink of financial collapse and no longer can afford to support Russia’s bullshit.
Wow, that's too bad. Anyway make sure you've got plenty of Rubles in your bathroom for when they make TP the national currency, bub.
The Ruble is worth more now than before the war startedYour graph is showing dollars vs rubles, dumbass. Compare rubles vs dollars over 5 years and it's the direction we all know it to be. https://www.tradingview.com/symbols/RUBUSD/
I hope Ukraine takes away their natural gas production next. Gonna be the USSU pretty soon, get fucked Putin.
Well... India is still a partner so Putin still has that...
India is taking advantage of the situation.
It's understandable that a developing country wants cheap energy, also genuinely sad the world's largest democracy is funding a dictator's barbaric land grab.
"world's largest democracy" run by a fascist, who embraces pogroms against the Muslim minorities and assists Israel in its genocide against palestinians, including sending India troops there.
Of course Israel is best buddies with Modi in the same way they sold drones to Russia after the Crimea annexation, which later helped Russia bomb Ukraine during the main invasion. Neither country is a liberal democracy, nor do they share interests with "the West" past their own immediate advantage.
They were taken advantage of previously; as fucked as it all is, they have no reason to care.
India is touring EU. They have visited Kiyv as well.
Just sayan dot tiff
what happens when they run out? do they have to start buying more yans from somewhere else?
When they run out then they can't purchase goods from China.
Well, they can, but the cost will get more volatile... super oversimplified, it's the difference between drinking at home booze you bought at wholesale prices and keeping a running tab with a local bar/pub. You'll be subject to the bar and any price changes they (read: the currency markets) want to make.
They start using other currencies they have. At some point it will be rubbles. But first it will be currencies their population has.
It would be interesting to see the ruble collapse entirely. Crypto is already very popular in Russia, so the state could lose a tremendous amount of power/funding when they need it most.
Do you feel that Putler? That's the walls closing in.
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Shh, humans are talking.
I'm selling my extra pea gravel. I'll try and get an exception for export to ruzzia if necessary. Sure gravel can be used as bullets. But I find that level of indefence acceptable.
Each 1/4" gravel piece will cost just one ruble. And the uses are endless! For example, for several billion rubles you can defend one building! Did I mention that each gravel piece is personally signed by a very hot American woman who will be completely naked while signing it and she will gently touch the tip of her blossoms on every piece before kissing it and telling it a story. Usually she will arrange several thousand pieces around her to tell the story. Usually it's a reading of an accounting book though. But she will be totally naked.
We, at my backyard pile of gravel company hope that before we run out, there will be at least one ruzzian buried several feet under each one of our beautiful gray colored pieces.
The true value of this very special gravel comes in the field! As each soldier is dropped by those pesky Ukrainians, the location can be specially marked by placing a pieces over the perished. Incredibly, you can then place one in a special counting bag. So if you count 5 pieces later in that bag, that means you had 5 perished guys. And these marker counters last for years and years! No maintenance required! It's the perfect way of saying thank you. I got at least a cubic yard of this beautiful specimens. 50% off if we switch the model with a very naked mole rat. The rat does all the aforementioned things but in its own native way of communicating with little squeaks.