Bloomberg: Bank of Russia reserves in yuan will run out in 2023 with a fall in the cost of Urals

According to analysts Bloomberg and Citigroup, if the cost of Urals oil costs $25-35 per barrel, the Central Bank’s reserves in yuan will be exhausted as early as 2023. If the price of the energy resource remains at the current level ($58.8 per barrel), reserves in Chinese currency will be used up in 2.5 years.

The agency’s material states that now the Central Bank’s reserves in yuan are equivalent to $45 billion. Analysts consider these resources extremely valuable for Russian President Vladimir Putin, since at their expense the Russian authorities will be able to cover the budget deficit in the long term.

"The scale of Russia's financial disaster," the authors of the article believe, can be estimated based on the dynamics of the depletion of yuan reserves. Their replenishment can be guaranteed only if the price of oil is above $60 per barrel, Citigroup analysts say.

In December, the G7 states and the EU approved the introduction of a price ceiling for oil supplies from Russia at $60 per barrel, which, according to Bloomberg, led to a sharp drop in budget revenues of the Russian Federation. In September, the agency reported that the Russian Ministry of Finance defined yuan as the main currency for investments.

Read more about the role of the yuan in the Russian economy - in the material "Kommersant FM" "The yuan will save reserves".

Andrey Sapozhnikov

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