🚨 Russia’s Yuan Move Isn’t Freedom — It’s a Trap

Russia just borrowed $2.6B in yuan, but despite the headlines, this isn’t de-dollarization — it’s a new dependency.

On December 2, 2024, Russia issued its first yuan sovereign bond (CNY 20B). Many celebrated it as a blow to the U.S. dollar, but the reality is far less flattering:

❌ Chinese investors are not allowed to buy the bonds

❌ Moscow Exchange remains under U.S. sanctions

❌ The only buyers are Russian oil companies holding yuan they can’t use anywhere else

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The Numbers Reveal the Hidden Risks

Russia–China trade (2024): $245B, 99% in local currencies

September 2024: Moscow’s yuan repo rates exploded to 212%

Chinese banks rejected 98% of Russian payment requests

Russia’s central bank had to supply emergency yuan — a currency it cannot print

Russia didn’t break free of the dollar — it simply traded one dependence for another.

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Global Picture

Dollar reserves: 56.3% (lowest since 1994)

Yuan share: just 2% (completely stalled)

Gold purchases: 1,000+ tonnes per year for three consecutive years — the highest since the 1960s

Reserve managers aren’t shifting from dollars to yuan.

They’re shifting from sanctionable currencies to sanction-proof assets like gold.

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Consequences for Russia

2025 budget deficit: 5.7T rubles (5× initial forecast)

National Wealth Fund: down 68% since the invasion

Yuan bond yields: 6% vs ruble bonds at 16%

Russia is choosing the yuan because it’s the only option left — not because it’s the right one.

💥 The sovereignty trap is real.

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Token Signals

$SXP — Short Signal 🔴 Target: 0.0567

Current: 0.0681 (+27.76%)

$SAPIEN — Short Signal 🔴 Target: 0.15021

Current: 0.15253 (−11.86%)

$AT — Long Signal 🟢 Target: 0.1950

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