China foreign exchange regulator concerned over Russian rouble slump

BEIJING: China's foreign exchange regulator today expressed concerns over the devaluation of the Russian rouble, asking Chinese entities to take measures to avoid risks.

Chinese enterprises and financial institutions should use forward and swap facilities to avoid risks, a senior official at the State Administration of Foreign Exchange, Wang Yungui said in a press conference here.

The rouble plummeted to a historic low two days ago before a moderate recovery that saw it stabilise at 100 rubles to 10.27 yuan ($1.65) today.

Wang noted that the situation had not affected transnational capital flow in China but it would continue to be assessed.

China and Russia, Wang said, are close trade partners and healthy bilateral trade is expected to continue, state-run news agency reported.

China's exports to Russia increased 10.5 per cent year on year and imports 2.9 per cent in the first three quarters of the year, with total trade volume valued at 70.78 billion dollars.

The two countries also have large currency swap agreements.