š„šØ BREAKING: RUSSIA JUST BORROWED $2.6B IN YUAN ā AND THIS ISNāT DOLLAR-FREE, ITāS A NEW TRAP!
On December 2, Moscow issued its first sovereign yuan bonds worth CNY 20B ā immediately hailed as a āwin over the dollar.ā
But hereās the catch no headline is telling you:
ā No Chinese investor can buy these bonds
ā Moscow Exchange is under US sanctions
ā Beijing banks canāt touch these yuan ā Washington could cut them off from the dollar
Whoās buying?
Only Russian oil companies sitting on yuan they canāt really spend elsewhere.
This isnāt āinternationalizationā ā itās a closed-loop shuffle.
š SOLID FACTS
⢠Russia-China trade in 2024 ā $245B, 99% in local currencies
⢠September 2024: yuan repo rates in Moscow skyrocketed to 212%
⢠Chinese banks rejected 98% of Russian payment requests
⢠Russia had to ask Chinaās central bank for emergency yuan liquidity ā currency it canāt print
š GLOBAL CONTEXT
⢠Dollar share in global reserves ā 56.3% (lowest in 30 years)
⢠Yuan ā just 2%, stagnant
⢠Central banks buying 1,000+ tons of gold annually for 3 straight years ā record levels since the 1960s
The world isnāt switching to yuan. Itās hedging with gold ā the only asset untouchable by sanctions.
š£ WHAT THIS MEANS FOR RUSSIA
⢠2025 budget deficit ā 5.7 trillion RUB
⢠National Wealth Fund down 68% since the invasion
⢠Yuan bonds yield 6%, ruble bonds 16% ā but Moscow takes the yuan because itās available, not optimal
Russia hasnāt escaped the dollar system. It just swapped one landlord for another.
This isnāt strategy ā itās dependence.
Itās a sovereignty trap.
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