Yuan accounts for 99.6% of exchange forex trading on Moscow Exchange after sanctions, OTC volumes unchanged - CBR

MOSCOW. July 10 (Interfax) - The yuan accounted for virtually the whole volume of exchange forex trading after the imposition of sanctions against the Moscow Exchange, making up 99.6% of all transactions, the Central Bank of Russia said in a report on financial market risks posted on its website.

Trading volume on the over-the-counter forex market was almost unchanged, slipping to 13.0 trillion rubles in June from 13.1 trillion rubles in May.

Average daily forex trading volume on the exchange market fell 32.7% after the imposition of sanctions, to 282 billion rubles in the second half of June from 418 billion rubles in the first half of the month. Furthermore, a portion of the exchange market's liquidity moved from "toxic" currencies to the yuan, increasing yuan trading volume on the Moscow Exchange to record highs on some days, such as 509 billion rubles on June 19, while the maximum figure before the imposition of sanctions was 446 billion rubles.

Overall forex trading volume on the exchange market for the month fell 33.3% month-on-month to 6.3 trillion rubles.

The main net sellers of forex on the exchange market in June, unlike in previous months, were nonfinancial organizations, who sold forex totalling 265.4 billion rubles, compared to 268.0 billion rubles in May. Systemically important lending institutions, who are traditionally the main agents in the sale of exporters' forex revenue on the exchange market, slashed net forex sales to 126.8 billion rubles in June from 671 billion rubles in May.

Lending institutions not classified as systemically important increased forex purchases on the exchange market to 335.8 billion rubles in June from 285.9 billion rubles in May.

Nonresident banks reduced net forex purchases on the exchange market by 63% to 139 billion rubles from 378 billion rubles in May. On the over-the-counter, however, they increased net forex purchases to the equivalent of 440 billion rubles from 236 billion rubles in May.