Russia-China Trade Stifled by Yuan’s Surge Against Ruble

A sign displays foreign currency exchange rates to the Russian ruble at an exchange bureau in Moscow, Russia, on Monday, Feb. 28, 2022. Photo: Bloomberg

(Bloomberg) — It has just got a lot more expensive for Russia to deal with its biggest trade partner China.

The yuan hit a record high against the ruble this week — surging by as much as 25% on Tuesday alone — as sanctions were levied against the Russian central bank. Some Chinese banks have suspended trading of the currency pair, with signs of distress showing up in the widest ever bid-ask spread.