Abolishing “Dollarization” in Russian-Chinese Economic Relations

Introduction

Georgy Zinoviev, director of the First Asian Department of the Russian Foreign Ministry, said that the policy of abolishing “dollarization” in economic relations between Russia and China has actually been achieved.

Growth of National Currencies

The Russian diplomat added: “The share of national currencies in Russian-Chinese payments is growing at a very fast pace: by 2022 it was about 25%, and has now exceeded 80%.

Ruble/Yuan Pair Trading

Zinoviev noted that trading in the ruble/yuan pair on the Moscow Exchange has long exceeded the volume of trading in the US dollar.

Preference for National Currencies

He noted that “the economic parties of Russia and China have largely moved away from the “toxic” currencies of Western countries and began to give preference to the ruble and yuan as more reliable, and most importantly, safe means of payment.”

Increase in Bilateral Payments

In recent years, the share of national currencies in bilateral payments between Russia and China has been increasing. In 2022, this process accelerated significantly – in the first half of that year, almost half of trade with China was carried out in rubles and yuan, and in the second half the process continued to gain popularity, including among energy companies.

Preference for Chinese Yuan

Last March, President Vladimir Putin, during negotiations with the Chinese leadership, said that Russia prefers to develop the process of using the Chinese yuan in settlements with countries in Asia, Africa, and Latin America.

Source

Source: News