Chinese Yuan banking in Russia

[gengiskhan]

A lot of members here including MA have mentioned banking, storing wealth in Yuan, having access to the CIPs system.

As of today, Moscow becomes No.4 offshore trading centre for yuan lagging only Hong Kong, Britain and Singapore. https://www.reuters.com/markets/currencies/yuans-new-dollar-russia-rides-redback-2022-11-28/

Russian bank accounts are easy to open for non-residents with just an address registration and passport (notarized translation).
Unionpay debit cards are available in the Russian market issued with the settlement currency in Yuan. Specifically Gazprombank. These Unionpay cards work almost everywhere except the western bloc.

Russian banks have been made indirect participants of CIPS. VTB among other Russian banks supports CIPS remittances and Yuan deposits. Another interesting angle is that these accounts can be easily funded via Crypto.
Spreads are decent. For settlement in Yuan, the exchange rate is competitive. Moreover offshore Yuan vs USD has been very stable.

Assuming you're a citizen of "friendly" countries. This seems like a decent way to bank in Chinese Yuan?

 

[tolstoy]

A lot of members here including MA have mentioned banking, storing wealth in Yuan, having access to the CIPs system.

As of today, Moscow becomes No.4 offshore trading centre for yuan lagging only Hong Kong, Britain and Singapore. https://www.reuters.com/markets/currencies/yuans-new-dollar-russia-rides-redback-2022-11-28/

Russian bank accounts are easy to open for non-residents with just an address registration and passport (notarized translation).
Unionpay debit cards are available in the Russian market issued with the settlement currency in Yuan. Specifically Gazprombank. These Unionpay cards work almost everywhere except the western bloc.

Russian banks have been made indirect participants of CIPS. VTB among other Russian banks supports CIPS remittances and Yuan deposits. Another interesting angle is that these accounts can be easily funded via Crypto.
Spreads are decent. For settlement in Yuan, the exchange rate is competitive. Moreover offshore Yuan vs USD has been very stable.

Assuming you're a citizen of "friendly" countries. This seems like a decent way to bank in Chinese Yuan?

What is this address registration?

 

[Mike Forman]

A lot of members here including MA have mentioned banking, storing wealth in Yuan, having access to the CIPs system.

As of today, Moscow becomes No.4 offshore trading centre for yuan lagging only Hong Kong, Britain and Singapore. https://www.reuters.com/markets/currencies/yuans-new-dollar-russia-rides-redback-2022-11-28/

Russian bank accounts are easy to open for non-residents with just an address registration and passport (notarized translation).
Unionpay debit cards are available in the Russian market issued with the settlement currency in Yuan. Specifically Gazprombank. These Unionpay cards work almost everywhere except the western bloc.

Russian banks have been made indirect participants of CIPS. VTB among other Russian banks supports CIPS remittances and Yuan deposits. Another interesting angle is that these accounts can be easily funded via Crypto.
Spreads are decent. For settlement in Yuan, the exchange rate is competitive. Moreover offshore Yuan vs USD has been very stable.

Assuming you're a citizen of "friendly" countries. This seems like a decent way to bank in Chinese Yuan?

What do you mean the Chinese Yuan has been very stable? In a period of 8 months it has been fluctuating from 6.3 to 7.3, that's almost 20 percent.

If you don't live in China how will you use the Yuan? You can use your union card in most Asian countries but there are limited. You can't even transfer the money to China, as transferring yuan between personal accounts from abroad to China is not possible

Exchange rate spreads are often indeed around 0.5pct depending.

I have several onshore and offshore cny accounts, the last thing in my mind is to keep any savings in CNY/CNH, since it's not a free tradeable currency.
The max note value is 100cny as well, so to move 500k cny in cash you have a bag full 50 large cash bundles.


Do you have currency exchange offices in Russia that easily accept exchange from cny to any other currency and allow to exchange amounts of let's say 500k cny without problem (as in Hong Kong) ?

 

[JackAlabama]

cny is a long way of becoming usd. For this to happen, China ought to relinquish control over it....

Also the bills have a too low value to become somewhat useful. Its not exactly great with these 100$ bills regarding usd, but only 14$ for cny is still like almost 10x more space needed to store them.

 

[gengiskhan]

As a non-western aligned offshore yuan banking venue, does it make sense?
With the non-convertibility and local currency settlement between China and Russia being limited to trade between the two countries.

 

[JackAlabama]

As a non-western aligned offshore yuan banking venue, does it make sense?
With the non-convertibility and local currency settlement between China and Russia being limited to trade between the two countries.

If Chinas and Russias interest were to differ, the yuan (or also ruble if that would be in use) would end up being used the same way usd is used now.