Key quotes:
Russia has accumulated billions of rupees that are sitting in Indian banks.
Reuters reported that Russia and India have suspended negotiations over using rupees for trade between the two countries.
Russia prefers to be paid in Chinese yuan, which has become the most-used foreign currency in Russia.
Russia and India remain deadlocked in a currency dispute that has also frozen weapons sales between the two countries.
India won’t pay Russia in US dollars over concerns that it may face secondary sanctions and won’t pay in rubles because of worries about obtaining Russia’s currency on global markets at a fair rate,
Recently, (Russia) agreed to use the (Chinese) yuan to for payments on a nuclear-power plant deal with Bangladesh, after previously insisting on using its ruble.
How indebted are the Russians to the Chinese now.
They’re completely at the mercy of the Chinese government which tightly controls the Yuan
They’re getting deeper into debt with Chinese banks, borrowing the equivalent of USD$10 billion as of last March, although the article doesn’t say what currency the loans are in. Likely USD$.
To put that amount into perspective, Russia’s USD$ currency reserves were about $599 billion as of May 2023.
The Chinese economy isn’t doing so hot either
And tossing billions into the black hole that is Russia probably won’t help those banks stay financially stable.
I thought the US had like 20 trillion in debt. 10 billion seems pretty small