The sharp depreciation of the Russian rouble and growing devaluation expectations have caused widespread concern among Chinese exporters, prompting many to suspend sales on Russian e-commerce platforms, according to industry insiders.
Data from the People’s Bank of China shows that the yuan-rouble exchange rate rose from 1 yuan to 13.9913 roubles on November 22 to 15.6113 roubles on Thursday, before falling to to 14.91 roubles on Friday.
During trading on Wednesday, the rouble-US dollar exchange rate fell by over 8.5 per cent to a one-year low of 114.75 roubles to the dollar.
“The continued depreciation of the rouble is posing serious losses for Chinese exporters,” said Andy Guo, the founder of Waimaojia, a business platform on WeChat that has attracted many exporters focused on the Russian market.
“On the one hand, the rouble’s depreciation causes a sharp increase in domestic commodity prices, weakening Russian consumers’ willingness to buy and thus reducing orders from us. On the other hand, exchange rate fluctuations further erode the profit margins of Chinese merchants after settlement.”
He said the impact will be felt mainly by e-commerce platforms pricing goods in roubles and Chinese businesses operating in Russia in trade denominated in roubles.