Chinese Yuan in Belarusian Exchange Offices

The Belarusian currency will be trading in Chinese yuan on March 18, according to the central bank. As a result of the sanctions, banks and businesses in Belarus will be forced to use national currencies, such as the Russian ruble or the Chinese yuan. The Belarusian government has already agreed to increase settlements in these currencies. Hence, it is possible to buy and sell Chinese yuan in exchange offices in Belarus. Additional info found at https://www.autoparus.by/publication/61954.

 

In 2009, the two countries signed a currency swap agreement, under which they agreed to exchange national currencies worth about $3 billion. However, both countries' business entities were not interested in exploring the potential of this deal, and the devaluation of the Belarusian ruble against the Chinese yuan in 2011 did not add to their optimism. Despite the gloom, the two countries managed to sign a new three-year agreement in 2015, in which they agreed to exchange $1.12 billion in national currencies between them.

 

Although there are many reasons why Belarusians would like to see their money in a foreign currency, the exchange rate is currently high enough to make this a worthwhile endeavor for many. For example, the Chinese yuan is worth 20,000 roubles. But, the exchange rate is still quite low in Belarus, so you should be able to exchange your existing Belarusian roubles for Chinese yuan.

 

While there are a number of reasons why the Belarusian currency could be traded in exchange offices, the main reason is that the country's government has resorted to censoring the opposition. The government is punishing citizens and businesses for speaking out against the regime. Foreign exchange restrictions have stifled democratic development in Belarus, and a government crackdown on civil society and independent media is a key reason why the country has become isolated from the rest of the world.

 

China is interested in increasing its share of global settlements in renminbi. But it faces difficulties in convincing other countries to swap out their currency for its more volatile counterpart. That reality is reflected in the shares of Russian and Chinese currencies in Belarusian exchange offices. As of December 2021, the share of the Chinese currency in the total settlements of the two countries was 2.7%, while the share of the Russian ruble was only 0.21%.

 

Although the yuan is widely used in Russia, its adoption in Belarus is still in its early stages. It will take some time before the currency finds its place in the banking system. But the government is actively promoting UnionPay cards and the use of Mir cards. With the recent increase in demand for the UnionPay card, the yuan may soon take its rightful place there. If successful, it will be able to fill a place in the banking system of Belarus.

 

The alleged illegal sale of Chinese yuan in Belarusian currency exchange offices is another problem with Belarus' currency. The Chinese yuan in Belarusian exchange offices is likely illegal because it is a currency of the former Soviet Union. Furthermore, it is possible for the local currency to be used for the exchange. This is because Chinese yuan is a valuable foreign currency.