It’s still an insignificant sum, which amounts to less than 3 percent in Russia’s yuan circulation in the last three months. The yuan’s share in stock market trading has also skyrocketed: from 3 percent to 33 percent.įrom January 13 to February 6, the Finance Ministry plans to sell foreign currency worth 54.5 billion rubles by tapping into its 3.1-trillion-ruble reserves of yuan liquid assets, which make up over 40 percent of distributable liquid assets in the National Wealth Fund. They have been replaced by ruble and yuan payments, which have seen respective increases of 12.3 percent to 32.4 percent and 0.4 percent to 14 percent. In nine months, the share of dollar and euro transactions on the Russian market declined from 52 percent to 34 percent and from 35 percent to 19 percent, respectively. The invasion and subsequent sanctions have forced Russian financial officials to accelerate those efforts: in the third quarter of 2022, the proportion of foreign currency in the Russian banking system fell to an all-time low of 15 percent. Efforts have now clearly shifted to cryptocurrencies and yuan payments, which means the Russian economy will grow increasingly dependent on the Chinese currency, with all the risks such a shift entails.Įven before the war, Russia’s central bank aimed to reduce the country’s dependence on Western currencies, particularly the U.S. The authorities and businesses have tried switching to national currency transactions, barter deals, cash payments, and other schemes, but were unable to find a comprehensive solution in 2022. The government is being forced to look for new ways to get paid for Russia’s exports and to pay for imports. The country’s main banks have been cut off from SWIFT the number of transborder transaction channels has decreased drastically and it has become much harder to conduct transactions in dollars and euros. One of the biggest problems Russia is currently facing is managing its foreign trade transactions.
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