Chinese yuan surpasses US dollar in Russian trade amid global tensions. Yuan’s dominance reflects geopolitical shifts.
Yuan Overtakes Dollar Amidst Global Tensions
In a significant shift, the Chinese yuan has emerged as the dominant currency in Russia, surpassing the US dollar in trade volumes. This development comes amidst geopolitical tensions and ongoing conflicts.
Yuan Dominance in Russian Trade
Recent data reports reveal that the yuan now accounts for 42% of currency trades in Russia, while the dollar stands at 39.5%. Notably, the trading volumes for the yuan have tripled, reaching $385 billion in 2023.
Impact of Global Events
The surge in yuan usage coincides with Russia facing multiple sanctions from Western nations, primarily the US, due to its involvement in conflicts such as the war in Ukraine. These sanctions have posed challenges to Russia’s global transactions and supremacy.
Shift Towards De-dollarisation
In response to the sanctions, Russia is actively seeking alternatives to reduce reliance on the US dollar. The adoption of the yuan for foreign trade and offshore transactions is one such alternative, reflecting Moscow’s strategy of “de-dollarisation.”
Russian Prime Minister Mikhail Mishustin has advocated for the abandonment of the dollar, encouraging oil-producing nations in the Middle East to transition to national and regional currencies.
As tensions persist and geopolitical dynamics evolve, the growing prominence of the yuan in Russian trade underscores the changing landscape of global economics and currency markets.
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