Moscow: The Chinese yuan has significantly increased its role in Russia's international trade, according to information made public by the Bank of Russia in its financial market risk report on Thursday.
The share of Chinese currency in Russia's import settlements increased dramatically, from only 4% in January 2022 to 23% by the end of last year. Also increasing from 0.5% to 16% was the percentage of export settlement of yuan.
Meanwhile, the US dollar and the euro have lost a significant amount of ground in Russia's foreign trade. These currencies accounted for 87% of export settlement at the beginning of 2022, but this percentage has dropped to 48% by the beginning of 2023.
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Furthermore, the percentage of dollars and euros used to settle imports fell from 65% in January 2022 to 46% in December.
In response to widespread sanctions from hostile nations, the Russian economy has undergone a significant structural change since March 2022, with foreign economic activity being channelised.
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According to the regulator, the increase in the share of yuan was mainly attributed to the decline in the share of toxic currencies.
By early 2023, 4% of the total money supply was made up of currencies of other "friendly" nations. Overall, the ruble and "friendly" currencies made up 52% of Russia's export settlements at the end of 2022, surpassing the dollar and euro ratio for the first time.
The term "friendly" refers to nations that have not imposed sanctions on Russia in relation to the conflict in Ukraine.
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Egor Susin, managing director of Gazprom Private Banking, told RBK that the figure "reflects the current situation, the risks and costs that we now see in unfriendly currencies," noting that there is significant room for growth in settlements What 'is not' does not include the dollar or the euro.
