Financial analyst and trader Artem Zvezdin shared insights in an interview about the yuan as a compelling alternative to the dollar and euro. He argued that the Chinese currency could offer protection for Russians amid growing geopolitical and economic uncertainty, especially as Western sanctions evolve.
Zvezdin warned that Western sanctions pressure on Russia is likely to intensify, casting doubt on the safety of holding savings in dollars and euros. He did not rule out scenarios where foreign currency deposits could be converted under unfavorable terms, a development that would hit ordinary investors hard. He thus recommended considering the yuan as a prudent hedge against such shocks.
“I do not dismiss the possibility that some savings denominated in dollars and euros could be converted at an exchange rate disadvantage for clients, especially amid sanctions from the West or Russia itself. In that context, the yuan appears to be a strong alternative that can help shield investors from heightened risk,” he noted.
In discussing how to deploy yuan in a portfolio, Zvezdin outlined both long-term and short-term strategies. For a longer horizon, he suggested allocating 30% of savings to the yuan, matching 30% in gold, and placing the remaining 40% in rubles. For shorter-term actions, he proposed directing 20% into yuan, another 20% into dollars and gold, with the rest kept in rubles. These allocations reflect a diversified approach designed to temper currency risk while preserving value over time.
He clarified that converting money to the yuan does not guarantee income. Instead, the strategy aims to preserve purchasing power and shield wealth from inflation and a possible ruble decline in the long run. The yuan, in this view, serves as a protective measure rather than a guaranteed source of profit.
Zvezdin listed four reasons behind the rising interest in the yuan among Russian savers and businesses. First, the Central Bank has repeatedly highlighted the risks of holding savings in dollars and euros, noting potential sanctions-related freezes. Second, many banks and brokers have introduced stricter fees and limits on dollars and euros, increasing the appeal of yuan-based deposits. Third, some lenders have limited exchange programs for dollars and euros, steering client activity toward yuan through various lending and deposit programs. Fourth, RMB deposits often offer higher yields compared with other foreign currencies, with rates around 3% per year that can help offset inflationary pressures and provide a buffer against currency depreciation.
Earlier, another expert weighing in on yuan investments emphasized the main dangers Russians should consider. The discussion highlighted that while the yuan may diversify risk, it also brings exposure to China’s regulatory environment, capital controls, and market dynamics that could impact liquidity and value over time.