FAST FIVE: What Does The Yuanization Of The Russian Economy Mean For The Dollar?
As a result, aside from the Turkish lira, the United Arab Emirates` dirham and the Indian rupee-each of which cannot be fully relied on due to a number of factors-Russia has been reduced to the use of the yuan as an alternative reserve currency to the US dollar and euro.
For instance, during the Moscow Financial Forum, Russian Minister of Finance Anton Siluanov and Maxim Oreshkin, current economic adviser to Putin, disagreed on the yuan's role as a reserve currency.
Thus, when in need, Beijing can easily manipulate the price of the yuan (say, to create favorable conditions for foreign trade).
For instance, even ultra-conservative Russian information outlets have argued that the People's Bank of China (PBC) could easily devalue China's national currency, which could result in serious challenges for Beijing`s partners who are investing in the yuan.
In truth, some of the challenges feared by Russian economists and finance experts regarding Russia's growing involvement with the yuan are coming true.