The transfer of part of currency reserves to the yuan is justified because it would help diversify the assets, Ksenia Yudayeva, Deputy Governor of the Central Bank of Russia, said at the World And Russia in the Medium Term: Global Economic Trends expert discussion, held as part of the Gaidar Forum on Wednesday, January 16. The forum is organized by the Russian Presidential Academy of National Economy and Public Administration (RANEPA).
“The yuan is strengthening its positions. We are considering various ways to use our assets,” Ksenia Yudaeva said.
According to Yudaeva, the yuan can become a promising instrument in certain economic development scenarios.
“Increasing the share of yuan assets will allow for their diversification. The yuan can become a global reserve currency,” she said.
According to the economist, it is necessary for developing economies to have a safety cushion of currency reserves. Large capital inflow in the developing economies leads to big debts in the corporate sector.
“Serious risks appear and it is unknown how the economies with a high debt burden will be affected,” Yudaeva concluded.