China will double the permitted trading range between its currency and Russia’s rouble to help bolster trade between the two countries as the Russian economy reels from western sanctions imposed after its invasion of Ukraine.
The China Foreign Exchange Trade System (CFETS) announced on Thursday that “in accordance with the requirements of market development” it would widen the daily trading band for the renminbi’s exchange rate with the rouble, allowing the currency cross to trade 10 per cent in either direction of a daily midpoint set by China’s central bank, up from 5 per cent previously.
CFETS said the new trading band would be implemented from Friday, “with the approval of the People’s Bank of China and the State Administration of Foreign Exchange”.