Russia has recently made an announcement about its plans for currency intervention. The country has made it clear that they have the intention of causing international currency intervention.
For this purpose, the country will continue selling international currencies in the open market to bring the values of the currencies lower.
The country wants to deal with the economic and financial crisis that it is reportedly facing due to the growing sanctions.
Russia Wants to Keep Selling Yuan
The Russian government has announced that they have been dealing heavily with the Chinese yuan. Therefore, their plans are to sell as much Chinese yuan in the market to cause an intervention.
According to the Russian capital, their entire goal is to make sure that they are able to deal with the Western sanctions. For this purpose, they are aiming for higher economic stability.
The west is constantly tightening its net around Russia with the sanctions. They are tightening their grip on the Russian markets and all the sectors where the country excels, as they want to cripple it.
However, Russia is allied with some of the world’s most powerful countries. Therefore, it is not easy for the West to take down Russia as easily as they had anticipated.
The sanctions are being imposed on Russia because of the ongoing war the country with Ukraine. These are the strictest sanctions the Western block has launched against any nation ever.
Still, Russia is able to hold its own against the sanctions and it seems that the country is doing quite well. The country’s economy is proving to be very strong and resilient against Western pressure.
The strongest Partnership is Being Formed
It is a fact that Russia and China have two major rivals where the first one is none other than the United States and the second one in Europe.
Both countries have joined hands against the West and they are ready to do whatever they can to help each other out.
Russia’s President, Vladimir Putin has recently announced that they are going to form a strong partnership with China. Their partnership will have no limit and is going to stay permanent.
Both Russia and China are touting their partnership and that has the entire West extremely worried.
China has taken its partnership with Russia to another level as it has sent students to Russian universities. This way, Russia is never going to feel that it is being cut off from the entire world.
Russia is also taking things further as it has started to put signs in its jurisdictions, especially at the tourist spots that are in Mandarin.
Russia Plans to Sell Roubles as Well
In addition to selling the Chinese yuan, Russia is also planning to sell the Russian rouble in the market.
The Finance Ministry of Russia has announced that they are planning to 54.5 billion roubles in the open market. At the time of writing, the particular figure translates to $798 million.
The country has announced that they have planned on doing this because of the low revenues they are expecting to generate from gas and oil.
The Chinese Yuan is Growing Bigger in Russia
For a long time, Russian soil had to accept the US dollar as the most powerful currency. The US dollar gained power in Russia after the Soviet Union’s collapse, and it was hailed as the king of the country.
However, Russia is now changing its strategy toward the adoption of the dollar. Given the current circumstances, the country is well aware it cannot compete with the USD.
As the Chinese yuan has a strong chance of winning against the dollar, Russia has decided that it is going to provide full support to the Chinese currency.
The yuan is now becoming a major player in the Moscow markets and the economy. Russia may be able to make the yuan, the largest reserve currency in the entire world, and the year 2023 is the best opportunity.