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China Banks Tighten Curbs on Russia; Yuan Trading on MoEx Overtakes US Dollar

RUSSIA
  • China’s state-owned banks are tightening curbs on funding to Russian clients after the US authorized secondary sanctions on overseas financial firms that aid Moscow’s war effort in Ukraine, Bloomberg report citing people familiar with the matter. Banks will sever ties with clients on the sanctions list and will stop providing any financial services to the Russian military industry regardless of the currency or the location of the transactions, said the people.
  • At the end of 2023, the share of Chinese currency trading on the Moscow Exchange reached almost 42%, displacing the US dollar from the top spot, Kommersant report. The volume of yuan trading tripled to RUB 34.2trln.
  • Foreign Minister Sergei Lavrov will meet his North Korean counterpart in Moscow later today, Bloomberg report. The two ministers will hold a news conference at 1000GMT/1300 local time.
  • Meanwhile, Prime Minister Mikhail Mishustin and Finance Minister Anton Siluanov will take part in Finance Day at the Russia International Exhibition and Forum in Moscow. There are no economic releases of note on the docket.

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