The volume of foreign currency loans on the balance sheets of Russian banks has been reduced to a minimum in the last 12 years. Business loans in US dollars and euros have become problematic due to sanctions, and the Chinese yuan, while increasing its share of foreign currency loans, is still unable to replace these currencies.
Russian banks keep $120 billion in foreign currency loans on their balance sheets. This is the minimum amount since 2011, that is, during the last 12 years. RBC writes about this with reference to the data of the Bank of Russia.
Loans to companies in US dollars and euros became problematic after the start of a special operation in Ukraine and the subsequent wave of sanctions against Russia. If in March 2022 the company received $17.9 billion in foreign currency loans, then in April this amount fell to $6.5 billion, and in May to $2 billion.
Since September 2022, the Chinese yuan began to occupy a major part in the volume of foreign currency loans issued, and since October of the same year it already occupies half of the volume of all foreign currency loans. However, the yuan cannot fully replace the US dollar and euro yet, experts say.
Author:
Kirill Bilyk
Source: RB
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