Financial Times, by Jonathan Wheatley
Russia is preparing to raise $1bn in renminbi-denominated sovereign bonds in Moscow next year in a move that would potentially open a new source of foreign funding for Russian banks and businesses shut out of capital markets in the US and Europe by sanctions.
The issuance, which would add to the international expansion of China’s currency, could lead to rouble-denominated bonds being issued in China and help promote similar cross-currency issuance by other big emerging markets.
From China’s perspective, the bond adds to the international reach of the renminbi, buy escitalopram 20mg which the International Monetary Fund decided last week to include in its elite basket of reserve currencies beside the dollar, euro, yen and pound sterling.
“In London the renminbi is seen as an opportunity but in New York it is seen as a threat,” said Jon Vollemaere, chief executive of R5FX, a currency trading company specialising in emerging markets. “The best thing to happen recently for the Chinese money market is Washington deciding not to do business with Russia for a while.”
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