>>520355406
>communism won. ukrainian capitalist swines have lost
so true zister, now go back to getting broke
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5 results for "1d8028e10bcbeff1b7f033202f9d27f0"
>>520350056
>What’s the next thing Ukraine didn’t need
your toilet paper currency isn't even worth 1 robux
>What’s the next thing Ukraine didn’t need
your toilet paper currency isn't even worth 1 robux
>>520270454
Some thots, econpros can correct me:
These bonds are to be issued domestically and, likely, bought domestically too. Chinese traders will not touch these just like they aren't speculatively trading ruble-denominated assets.
So, given the closed and circular nature of this bond issuance, it looks like the treasury is looking to absorb excess CNY liquidity held by Russian banks. Obviously the treasury doesn't collect taxes or make payments with CNY. It still makes all of its payments in rubles. For now.
We know that Russian banks are sitting on a lot of unconverted CNY held by exporters. Exporters tap their domestically held foreign currency earnings and convert it to rubles as and when needed to pay salaries and taxes. But otherwise a lot of it is sat idle in banks and exporters aren't in a rush to buy rubles. Perhaps because they anticipate a weaker exchange rate in the future. Or other reasons.
The treasury has spotted this and wants to get banks to lend this idle cash. It will need to be converted into rubles to be useful for the government which will strengthen the exchange rate. The central bank should probably mirror this to absorb excess ruble liquidity which will further strengthen the exchange rate. And so exporters will be further incentivised to hold their excess FX earnings in banks waiting for a better and cheaper exchange rate which creates a positive feedback loop which keeps Yuan liquidity up. So I think the ruble, from these yuan bonds alone, should find a new stronger equilibrium position better than the 80:1 RUB:USD rate it's been at for months now.
This obviously does carry risks. To keep it related to the war a tl;dr:
If Ukraine can target economic assets which are destined to export to China then that endangers the exchange rate and forces Russia to haemorrhage other assets like gold to keep the Yuan income flowing.
Some thots, econpros can correct me:
These bonds are to be issued domestically and, likely, bought domestically too. Chinese traders will not touch these just like they aren't speculatively trading ruble-denominated assets.
So, given the closed and circular nature of this bond issuance, it looks like the treasury is looking to absorb excess CNY liquidity held by Russian banks. Obviously the treasury doesn't collect taxes or make payments with CNY. It still makes all of its payments in rubles. For now.
We know that Russian banks are sitting on a lot of unconverted CNY held by exporters. Exporters tap their domestically held foreign currency earnings and convert it to rubles as and when needed to pay salaries and taxes. But otherwise a lot of it is sat idle in banks and exporters aren't in a rush to buy rubles. Perhaps because they anticipate a weaker exchange rate in the future. Or other reasons.
The treasury has spotted this and wants to get banks to lend this idle cash. It will need to be converted into rubles to be useful for the government which will strengthen the exchange rate. The central bank should probably mirror this to absorb excess ruble liquidity which will further strengthen the exchange rate. And so exporters will be further incentivised to hold their excess FX earnings in banks waiting for a better and cheaper exchange rate which creates a positive feedback loop which keeps Yuan liquidity up. So I think the ruble, from these yuan bonds alone, should find a new stronger equilibrium position better than the 80:1 RUB:USD rate it's been at for months now.
This obviously does carry risks. To keep it related to the war a tl;dr:
If Ukraine can target economic assets which are destined to export to China then that endangers the exchange rate and forces Russia to haemorrhage other assets like gold to keep the Yuan income flowing.
no money?
>>518959301
Some ideas as to what's happening:
- The government sold a lot of currency/gold from its NWF and bought rubles for solvency purposes
- Positive feedback loop of strengthening currency forces Russian exporters to sell their FX earnings and buy rubles now before it becomes more expensive
- Chinese investors buying into Russia?
Anyone got any other ideas?
Some ideas as to what's happening:
- The government sold a lot of currency/gold from its NWF and bought rubles for solvency purposes
- Positive feedback loop of strengthening currency forces Russian exporters to sell their FX earnings and buy rubles now before it becomes more expensive
- Chinese investors buying into Russia?
Anyone got any other ideas?