De-Dollarization Surges: Ruble and Yuan Settlements

Russia's De-Dollarization Surges Ruble and Yuan Settlements Hit 70% in Foreign Trade

Russia’s De-Dollarization Surges: Ruble and Yuan Settlements Hit 70% in Foreign Trade

Russia’s de-dollarization efforts have led to a remarkable surge in Ruble and Yuan settlements, now accounting for almost 70% of the country’s total foreign trade. This shift is evident in the country’s trade indicators, with Economic Development Minister Maksim Reshetnikov announcing on Friday that the de-dollarization of Russian trade with China is nearly complete.

A Significant Shift in Trade Indicators

In recent years, Russia restructured its foreign trade significantly. Trade indicators show 68% is now conducted in Rubles and Yuan. Furthermore, an impressive 95% of Russia-China trade settles in these currencies. This marks a substantial shift away from the US dollar’s dominance.

As Reshetnikov stated, payment channel issues have been successfully resolved. Undoubtedly, this de-dollarization trend empowers the Russian ruble in international transactions. Consequently, Russia reduces its dependence on the US dollar for trade settlements. This aligns with Russia’s broader de-dollarization strategy.

Yuan Overtakes US Dollar in Russia’s Import Settlements

Recent data from the Russian Economic Development Ministry reveals that the Yuan surpassed the US dollar in Russia’s import settlements with China in 2022. This milestone marks a significant turning point in Russia’s de-dollarization efforts. Russia has used the RMB Yuan in trade with various countries since then, including Mongolia, Taiwan, the Philippines, Malaysia, the United Arab Emirates, Thailand, Japan, Tajikistan, and Singapore.

Russia’s Foreign Trade on the Rise

Russia’s Federal Customs Service data shows foreign trade rose 8.1% in 2022 to $850.5 billion. Projections indicate Russia’s economy will return to a $1 trillion level by 2023’s end. Trade with China is expected to reach around $220 billion, accounting for 20% of total foreign trade.

Meanwhile, Russia’s trade with other nations also increases, with 2022 exports up 15%. This diversification aligns with Russia’s de-dollarization strategy to reduce US dollar dependence. Consequently, the Russian ruble gains prominence in international trade settlements. Such efforts strengthen Russia’s economic resilience amid global challenges.

Moscow’s Ambitious Strategy

Russia successfully replaces its previous Western markets with an ambitious Eastern strategy. This shift targets developing new markets in the East and Global South. Undoubtedly, it showcases Russia’s adaptability in the changing global economic landscape.

Moreover, by reducing dependence on the US dollar, Russia gains more economic control. This de-dollarization effort empowers Russia’s trade policies and strengthens the Russian ruble. Consequently, Russia increases its resilience against potential future sanctions or economic pressures.

A New Era in Foreign Trade

In conclusion, Russia’s de-dollarization efforts have led to a significant increase in Ruble and Yuan settlements, marking a new era in the country’s foreign trade. As Russia continues developing new markets and strengthening its trade ties with China, the country positions itself to emerge as a major economic powerhouse in the coming years. With its de-dollarization efforts gaining momentum, Russia is well on its way to achieving economic independence and reducing its reliance on the US dollar.

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