China has begun to divide its currency into “clean” and “dirty”, linked to Russia.
Chinese banks avoid working with yuan purchased on the sanctioned Moscow Exchange or used in transactions with Moscow.
Chinese financial institutions avoid “dirty” yuan linked to Russia, Vedomosti writes.
According to Alexey Poroshin, CEO of JSC First Group and member of the General Council of Delovaya Rossiya, Chinese banks do not want to work with the yuan, which is related to Russia.
He said that banks tacitly divide the yuan into “clean” and “dirty,” considering the latter to be linked to the Russian Federation.
Chinese banks are reluctant to deal with yuan purchased on the Moscow Exchange, which has fallen under Western sanctions.
In China, any yuan that has a Russian trace is considered “dirty”.
Banks may refuse to conduct transactions with yuan if they suspect a transaction with Russian legal entities or individuals.
Chinese financial institutions are barred from any yuan from Russian banks or those associated with the Russian Federation.
Problems with Russian-Chinese payments have become more complicated since the beginning of this year.
This happened after the tightening of restrictions against the Russian Federation and threats of secondary sanctions for banks.
