Business Desk
Apr 14, 2024
Russia's trade currency landscape is shifting dramatically as the Chinese yuan officially replaces the US dollar as the most traded currency. This comes amid ongoing Western sanctions imposed on Russia for its war in Ukraine.
According to new data, yuan transactions now account for 42% of Russia's total, compared to just 39.5% for the US dollar.
The surge in yuan usage is attributed to a threefold increase in trading volumes, reaching $385 billion in 2023. This trend is expected to continue this year.
The sanctions have significantly impacted Russia's ability to conduct international business through traditional channels. To circumvent these restrictions, Russia has turned to the yuan as an alternative currency for foreign trade and offshore transactions.
This shift away from the dollar is further emphasised by Russian Prime Minister Mikhail Mishustin's recent call for Middle Eastern oil producers to switch to national and regional currencies instead of the US dollar.
This move is seen as part of Russia's broader "de-dollarisation" strategy.
