Trading between the ruble and renminbi has increased due to Western sanctions.
Following a six-month hiatus, Russia intends to resume local bond sales, according to a Wednesday Bloomberg story. According to reports, the Kremlin also wants debt denominated in the Chinese yuan to aid in the revival of the Russian market.
According to the article, OFZs, also known as ruble bonds, may reappear on the market in the second half of September. Yuan bonds won't be introduced to the Russian market until the following year, it was stated.
An unnamed insider told the newspaper that "a long-mulled proposal to debut Chinese currency notes domestically is being dusted off with fresh urgency as yuan trading volumes soar after sanctions shut out Russia from its traditional markets in the US and Europe."
Bloomberg data shows that since the beginning of the year, trading volumes between the Russian ruble and the Chinese renminbi have increased 40-fold.
"The government has no need to borrow at this time, and sales of yuan debt would only serve as a benchmark for companies looking to tap the market," the source was quoted as saying. "Hundreds of millions of dollars coming into government coffers from energy revenue each day, the government does not need to borrow."
Rusal International, the world's largest producer of aluminum, and Polyus, Russia's largest gold miner, are said to have already begun conducting business in yuan.
Read more Latest Business News , Today Politics Headline , Today Finace News Update ,Latest Social News Update , World News Highlight , Entertainment Latest News , Today Sports News Update , Education Latest Update , Real Estate Today Update