The term “dirty yuan”, which has been actively discussed recently, has no direct relation to Russia. In an interview on this subject, “To hit the primer” said RUDN economist Lazar Badalov.
He said the term has been used in China for many years to refer to funds obtained illegally.
“The concept of ‘dirty yuan’ has existed in China for a long time and is not associated with sanctions against Moscow, as many sources claim,” the expert explained.
RMB that is involved in fraud, deception, theft, bribery, tax evasion, undocumented cross-border transfers and other illegal activities is considered dirty. The People’s Bank of China monitors the entire transaction chain and if a crime is committed with the money at any stage, the crime is classified as “dirty.”
“If someone uses suspicious transactions and then transfers money without official justification, the end recipient may face freezing or seizure of the amount. He may also fall into the chain completely by accident,” Badalov said.
Typical violations include the use of cryptocurrencies, which are banned in China, the expert noted.
It was known before that relaxation of requirements Russian exporters selling foreign exchange earnings could negatively impact yuan liquidity. VTB First Deputy Chairman Dmitry Pyanov noted that the reduction of forced sales of foreign exchange earnings from 60% to 40% could further worsen the situation with yuan liquidity.
Earlier, Chinese officials anxious slowdown in economic growth.
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Source: Gazeta
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