One of China's largest state-owned banks, Bank of China, stopped working with the Moscow Stock Exchange after it fell under US sanctions. The Moscow Times writes about it on Tuesday, July 23.
A subsidiary company, JSC Bank of China, performed the functions of a yuan clearing bank on the exchange. All transactions in Chinese currency on the stock market were carried out through it.
However, since July 15, the bank has abandoned this role. The reason was the inclusion of Mosbirzhi in the American sanctions lists.
As a result, trading in yuan — de facto the last currency on the Russian stock market — depends on a single Chinese bank — ICBC Bank. According to sources, its Russian "daughter" is now clearing yuan transactions.
However, and this may not last long, interlocutors in the financial market do not rule out: the license of the US Ministry of Finance, which still allows operations with the sanctioned exchange, is valid until mid-August. When it expires, Chinese banks will face sanctions, and exchange trading of the yuan in Russia may stop.
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