This is a CBSI on the world. I'm John Bachelor. I welcome my colleague Michael Bernstom of the

Hoover Institution watching the Russian economy under severe sanctions and yet

there is always opportunity. However Michael warned us very carefully and at

length last week that there's a shortage of Chinese currency

in Russia, in Moscow, the WAN, sometimes called the WANB.

Now a story this week. Russian banks have recently begun limiting the

number of loans they offer in New Han due to liquidity problems.

Smig who you identified this, recover for me why Russia doesn't have

adequate Chinese currency and what what this means for the economy good evening evening to you. The problem is that dollars are out, British

pounds are out, you is out because of the United States and European sanctions since June this year,

sanctions on the Russian currency exchange and so Russia stopped large-scale trading in Western currencies.

And this whole is now covered by the Chinese currency,

Renmin B, and Ren main B has become for Russia's reserve currency and the settlement currency.

All trade with China and the trade with lots of other countries is now paid in Renminb because Renminb is accepted by many countries.

The Russian ruble is not as popular, of course.

And in the beginning it was fine and the Russian exchange rate is

supported by the MMB and so it's it's become effectively the dollar or replace the dollar in Russia.

But then what started to happen that in the fear of the United States

sanctions since the executive order of the President of December 2023 Chinese banks started to delay or

completely stop payments from Russia and to Russia, for exports from Russia and two imports to Russia and so Russia had

difficulty buying Chinese goods and Chinese goods replaced lots of Western

goods for example the amount of Chinese cars, vehicles, passenger cars, increased by 593 percent.

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