Trading volumes in Chinese yuan on the Moscow Exchange overtook the US dollar in 2023, as Russia continues to shun the greenback in the face of crippling Western sanctions on its financial system.
Moscow is becoming increasingly dependent on Beijing and the “no limits” partnership between the two countries, having increased energy supplies to China and stepped up purchases of Chinese goods from cars to smartphones as European and US brands left the Russian market over Russia’s actions in Ukraine.
Yuan trading accounted for almost 42% of all foreign currency traded on the Moscow Exchange, with the volume in 2023 more than tripling year on year to 34.15 trillion roubles ($391.5 billion), the Kommersant daily reported on Tuesday, citing Moscow Exchange data.
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The dollar’s share stood at 39.5%, with a volume of 32.49 trillion roubles, down from 49.90 trillion roubles in 2022 and a more than 63% share. Yuan trading accounted for a 13% share in 2022.
Unable to trade in what Moscow now considers “unfriendly” currencies like dollars and euros, Russia is seeking to foster trade elsewhere.
China’s use of yuan to buy Russian commodities has sharply increased. China’s 2023 two-way trade with Russia hit a record $240 billion, Chinese customs data showed last week, up 26.3% from a year earlier.
Russia has ramped up imports invoiced in yuan. Over-the-counter trading of the Emirati dirham and Indian rupee has also grown significantly, although exchange trading in those currencies has not yet been launched.
- Reuters with additional editing by Sean O’Meara
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