The Russian foreign exchange market may soon lose its last major active segment — transactions with the Chinese yuan. This development comes after the market has already been stripped of exchange trading in dollars and euros.

According to a source close to the Central Bank of Russia, Chinese banks are likely to begin gradually reducing their cooperation with the National Clearing Center (NCC), a subsidiary of the Moscow Exchange where all transactions are registered. This potential withdrawal is attributed to pressure from the United States, which has placed the Moscow Exchange, NCC, and the National Settlement Depository on a “black list.”

While Chinese banks are expected to continue supplying yuan for Russian imports from China, their reduced participation at the NCC level could effectively halt exchange trading in the Chinese currency. Prior to sanctions, the yuan accounted for a significant portion of both exchange and over-the-counter foreign exchange market turnover in Russia.

Related: Russia’s Central Bank Turns to Chinese Yuan for Reserves Amid Sanctions

The impact of this potential change is already being felt, with the yuan’s exchange rate against the ruble experiencing a sharp decline following the introduction of sanctions. Some market participants are expressing concern about the possibility of yuan trading on the Moscow Exchange being suspended entirely.

Some analysts suggest that the cessation of yuan trading may not pose a significant problem. The Central Bank is expected to apply similar principles for establishing the exchange rate in over-the-counter trading as it did with the dollar.

Information for this story was found via the Moscow Times and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.