The Chinese currency has been gaining a foothold amid increasing de-dollarisation
The share of the Chinese yuan in Russian exports and imports saw another surge in April, increasing by 23% and 31% respectively, the Central Bank of Russia said in its latest review of financial market risks earlier this week.
According to the document released on Friday, the share of the Chinese national currency in Russia’s export-import operations in March stood at 18% and 27%, respectively.
In terms of value, monthly export revenue in Chinese yuan rose from $6.9 billion to $7.2 billion, while import payments saw an increase from $7.7 billion to $7.9 billion, the Central Bank added.
Meanwhile, the share of yuan trade on the Russian forex market increased to 39.2% in May from 36.1% in April as the share of Western currencies, mainly the US dollar and euro, dipped to 59.4%. The share of the greenback in transactions dropped to a new low of 43.7% in May compared to 44.5% recorded at the end of April, while the share of the euro decreased to 15.7% from 17.8%.
On Friday, Russian President Vladimir Putin said that the growing use of national currencies in сross-border settlements, including in energy trade, signals the end of the US dollar as the dominant currency globally.
Addressing the St. Petersburg International Economic Forum (SPIEF), the head of state said major economies’ dollar reserves are rapidly shrinking, as are trade settlements using the US currency, while many nations are pitching projects to create new reserve currencies.
Earlier this week, Igor Shuvalov, head of the Russian state development corporation VEB.RF, said the Chinese yuan is depriving the US dollar of its competitive advantages, and has acquired the status of a global reserve currency.
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