Some Chinese banks refuse to process yuan associated with Russia

Some Chinese banks are reportedly refusing to process yuan associated with Russia.

The banks are said to be categorizing yuan into "dirty" and "clean" currencies, with the former referring to yuan linked to Russian transactions and the latter being preferred, Caliber.Az reports via Russian media.

The publication highlights that certain Chinese financial institutions are now wary of yuan transactions connected to Russia, considering these funds as "dirty" due to sanctions and geopolitical concerns. This has led to complications for Russian entities attempting to engage in financial transactions using yuan.

Maxim Chereshnev, a member of the general council of Delovaya Rossiya, shared instances where Chinese banks declined to accept yuan purchased on the now-sanctioned Moscow Exchange. Meanwhile, Aleksey Poroshin, CEO of Pervaya Group and also a member of the association's general council, reported that some Chinese banks are avoiding any yuan with a Russian connection. This has caused difficulties for importers who must navigate these restrictions and find "clean" yuan sources to settle transactions.

Poroshin elaborated that while banks may not always know where the yuan was originally purchased, they examine settlement histories and documentation to ensure there are no links to Russian transactions.