Yuan as a Tool for Diversification and Savings Protection
The yuan has emerged as a viable option for diversifying portfolios and safeguarding savings. This view comes from Vitaly Isakov, Investment Director at Otkritie Management Company, as reported by Lente.ru. He stresses that shifts in trade between Russia and China are unlikely to move the yuan’s value in a meaningful way in the near term. Instead, the currency is seen primarily as a diversification instrument that helps shield savings from fluctuations in the ruble against global currencies.
Isakov notes that a reasonable range for yuan exposure in an investment plan is typically between 10% and 30%, depending on an investor’s financial position and risk tolerance. He cautions that yuan holdings should not be pursued as a route to high returns. For those seeking more substantial income, equities and stock market opportunities remain the preferred channel.
For investors currently holding dollars, Isakov recommends prioritizing strategies with low infrastructure risk. In practical terms, this can mean replacing some dollar-denominated exposure with bonds or other assets traded on domestic exchanges that carry lower risk profiles while still offering currency diversification benefits. The emphasis is on stability rather than speculative gains.
In contrast, financial literacy expert Valery Minchichova of the Financial Literacy Institute, under the Financial University in Moscow, suggests a different approach to saving. She advocates a gradual, game-like method to building a cushion for retirement. The idea is to start with small, disciplined contributions and increase the amount incrementally. For example, beginning with 10 rubles on day one and 20 rubles on day two could lead to a savings balance that reaches around 150 rubles over a short period. The method emphasizes consistency, patience, and the psychological ease of slow accumulation over time. (Source: Lente.ru)