China’s recent efforts to internationalize its currency Renminbi (RMB) have backfired. Countries such as Russia, Brazil, etc. have received RMB from trading with China and then heavily sold RMB on the offshore RMB market, causing the RMB price to keep falling.
Twitter account “@AsiaFinance” recently tweeted about an arbitrage opportunity in trading RMB: First, sell a little over 70,000 yuan of RMB to buy US$10,000. Second, exchange the US$10,000 for 1.5 million Russian Ruble on the black market. Third, exchange the 1.5 million Ruble, at the official exchange rate, for 127,300 Yuan RMB. Then you have turned 70,000 yuan to over 120,000 yuan.
Source: Twitter “@AsiaFinance” account, July 7, 2023
真的可以这样薅中国羊毛？这可能吗？第一步，卖出7万多元人民币，买来1万美元；第二步，在黑市上用1万美元换得150万卢布；第三步，用150万卢布按官方汇率换人民币，在12.73万元左右。会发现刚开始的7万元人民币变成了12.73万元。原来只能兑换1万美元，现在能兑换1.82万美元了…这里面，哪个环节最难？ pic.twitter.com/hwGjYqXeX4
— 亚洲金融 Asia Finance (@AsiaFinance) July 7, 2023