Russia Proposes Mandatory Yuan Reserves for Lenders
Governor Elvira Nabiullina said the move aims to prevent currency shortages and curb excessive lending. The central bank will now consult with commercial lenders.
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Russia Governor Elvira Nabiullina proposed mandatory yuan reserves for commercial banks Tuesday to stabilize the foreign exchange market. Yuan swap rates spiked above 40% in March after heavy lending and lower export inflows drained local liquidity. The move aims to curb volatility as the yuan replaces the dollar as the most-traded currency in Moscow.
