One-Third of Russian Export Payments are in Yuan
Published on: February 1, 2024.
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Russia Sees Surge in Chinese Yuan Payments for Exports
Russia’s Central Bank Governor, Elvira Nabiullina, revealed in an interview with Russian state news agency RIA that the use of the Chinese yuan for payments in Russian exports has increased by 86 times over the past two years, accounting for 34.5% of total payments. Additionally, the use of the yuan in Russian imports payments has risen eightfold to 36.4% during the same period. The shift away from the dollar towards other currencies, particularly the yuan, is a prominent trend in Russia’s foreign economic activity.
The rise in yuan payments is an important development for investors due to the central bank’s control over the rouble rate and its impact on the economy through banking regulations and interest rates. Nabiullina’s public remarks signal her return to work, addressing media speculation regarding her health.
Russia has been actively diversifying its economic ties away from Western markets since facing comprehensive sanctions following its invasion of Ukraine in February 2022. With a focus on non-Western markets, particularly China, Russia seeks to strengthen political and economic support.
The data from China’s General Administration of Customs reveals that China-Russia dollar-denominated trade reached $240.1 billion in 2023, representing a 26.3% YoY growth. Nabiullina also noted that the share of BRICS countries in Russia’s trade balance has doubled in the past two years, accounting for nearly 40% of the total.
Russia recently assumed the chairmanship of the BRICS bloc, which comprises Brazil, Russia, India, China, and South Africa. The addition of Saudi Arabia, Iran, Ethiopia, Egypt, and the United Arab Emirates marks an expansion of the bloc’s membership.
Sources: Source
