Abstract
In the paper, the author has formulated and proven the hypothesis according to which among the international financial centres of the BRICS Moscow is the most promising one in terms of becoming a new yuan’s offshore centre since there is a working niche for trades in currency pair rouble/yuan. And also, there are commercial banks in Moscow that take deposits in yuan both from individuals and legal entities. According to the conducted research, the author demonstrated the opportunities and optimal ways to use an advantage which presupposes the creation of an investor-friendly environment for Brazil, India and South Africa to trade in currency pair rouble/yuan at the Moscow Exchange. It can be possible in case of direct settlements in yuan in case of direct transactions between the mentioned countries and China both when exporting and importing.
Highlights
The major conclusions of this article come out of the hypothesis that direct settlements between Brazil, Russia, India and South Africa, on the one hand, and China on the other will lead to the creation of a new offshore centre of the yuan in Moscow by means of circulating currency vehicles traded at the Moscow Exchange
The mechanism described here operates like a financial network which is formed by the international swap agreements as well as financial funds such as the BRICS Development Bank
To finish the process of creating an offshore centre of the yuan in Moscow, it is necessary: 1) To have a bigger amount of commercial banks taking deposits expressed in yuan; 2) To increase the number of highly qualified professionals and companies offering complicated financial, legal, insurance, consulting, auditing and credit rating services which generally characterise the normal workings of an international financial centre; 3) To increase the swap trading deals in yuan; 4) To abolish the restrictions on lot limits to buy and sell currency vehicles in case of currency pair rouble/yuan; 5) To assist in yuan’s covering exports and imports of the BRICS; 6) To attract debt securities denominated in yuan to circulate in the Russian financial market
Summary
The major conclusions of this article come out of the hypothesis that direct settlements between Brazil, Russia, India and South Africa, on the one hand, and China on the other will lead to the creation of a new offshore centre of the yuan in Moscow by means of circulating currency vehicles traded at the Moscow Exchange.
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