(Yicai Global) April 4 -- The Moscow Exchange, MOEX, plans to expand the yuan trading business, Russian news agency Sputnik reported today, in a calculated move to challenge the widespread international use of the dollar.
Introducing the yuan transactions will help increase the share of the yuan versus the ruble exchange in the forex business in Russia’s market to replace the yuan against the dollar exchange business, said Moex’s development department.
The proportion of the yuan/ruble exchange in China’s forex transactions rose from 28 percent in 2012 to 41 percent this year. The average daily trading volume of the yuan in the Russian foreign exchange market had reached nearly USD200 million by the beginning of this year, up from USD106 million last year, the report said.
The yuan trading lasts very short due to time difference between the two countries. Moex also considers establishing foreign exchange trading links with China’s forex trading platform for both Russian and Chinese participants to take part in transactions.
In the currency market, cross-dealer repurchase agreement transactions are handled in the yuan, said Moex. It also plans to increase the yuan repurchase transaction as the common counter-currency. Furthermore, it considers to denominate in the yuan in the securities market and trade at different trading hours compared with China’s forex exchange market.