The Ruble is on the brink of collapse, and the Yuan is in danger!
On June 12, the U.S. government hit Russia with heavy sanctions, directly targeting Russia’s foreign exchange settlement center and cutting off their last way to exchange rubles for US dollars. This left Russian President Vladimir Putin scrambling, forcing him to urgently halt all foreign exchange transactions. If trading platforms dared to continue operating, the ruble-to-US dollar exchange rate would plummet from 1:100 to much worse within days.
Even with these countermeasures, in just one day, the ruble-to-US dollar exchange rate still dropped dramatically to 200:1. Panic spread rapidly throughout Russia.
If this continues, the People’s Bank of China will be forced to buy back yuan with US dollars, draining China’s reserves used to keep the exchange rate stable. Analysts pointed out that while the U.S. sanctions seemed aimed at the ruble, they were actually draining China’s dollar reserves.
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Ruble to USD at 200:1, Near Collapse! Russians Swap RMB for USD;Yuan at Risk,Drains China’s Reserves
