Financial analyst, trader Artem Zvezdin in an interview with Lenta.ru judicial The yuan is a “great alternative” to the dollar and euro. The expert noted that the Chinese currency could protect the Russians from increased risks from the West.
Zvezdin stated that the Western sanctions pressure on Russia will increase markedly, so Russian savings in dollars and euros are already in question. The analyst did not exclude the forced conversion of such savings into the ruble at a negative rate and advised the Russians to beware of the yuan.
“I do not exclude the mandatory conversion of foreign currency deposits in dollars and euros at an unfavorable exchange rate for the client, on the background of sanctions from the West or Russia. Therefore, the yuan seems to be an excellent alternative that can protect the investor from increased risks.”
Zvezdin gave examples of long-term and short-term investments in the yuan. In the first case, an investor can invest 30% of his savings in Chinese currency, the same amount in gold and 40% in rubles. In the latter case, it is allowed to send 20% of the funds in yuan, the same amount in dollars and gold, and the rest in rubles.
Zvezdin stressed that converting money to yuan does not guarantee income. Zvezdin emphasized that this would save from inflation and the weakening of the ruble in the long run, but not income. According to him, investing in the yuan is a way of not losing your money while maintaining its true value.
Zvezdin listed four reasons for the increase in Russia’s demand for the Chinese currency. First, the Central Bank has repeatedly warned Russians of the risks of holding their savings in dollars and euros, noting that such assets could be blocked under anti-Russian sanctions. The second reason is that banks and brokers impose mainly protective tariffs for deposits in dollars and euros, which contributes to the increased interest of the population and businesses in the Chinese yuan. In addition, some banks have restricted various exchange programs in dollars and euros, replacing these currencies with the yuan. We are talking specifically about lending programs and deposits. The fourth reason is that banks provide higher returns on RMB deposits compared to other foreign currency deposits. The analyst noted that the rate of deposits in yuan is currently around 3% per year and generally covers foreign exchange inflation.
Earlier, Stanislav Mitrakhovich, a leading expert of the Financial University under the Government of the Russian Federation, in an interview with socialbites.ca judicial The three main dangers of investing in the yuan for Russians.