USA: The Chinese yuan has overtaken the US dollar as the most traded currency on the Russian stock market for the first time, according to business daily Kommersant.

According to the outlet's estimates, which were based on information from the Moscow Exchange (MOEX), the yuan replaced the US dollar as the most traded currency in February.

According to the data, the total volume of Chinese currency transactions during the month exceeded 1.48 trillion rubles ($19.6 billion), up a third from January.

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Although it was only up 8% to 1.42 trillion rubles ($18.8 billion), February saw more transactions involving the dollar. As a result, the dollar accounted for just over 38% of the total trading volume in major currencies, the euro accounted for 21.2%, and the yuan represented about 40% of that volume.

To put things in perspective, a year ago the trading volume for the dollar, euro, and yuan was 87.6%, 11.9%, 0.32, and 0.32%, respectively.

Some large Russian businesses have switched to trading with China exclusively in yuan, while others continue to support dollar/yuan parity. In the coming months, we expect an increase in the proportion of national currencies used in trade with China, Vasiliev told Kommersant.

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According to the business daily, the fiscal regulation mechanism, under which the Russian Central Bank began selling the Chinese currency on the open market in January, has helped increase exchange trading volume in the yuan since the start of 2023.

According to Vasiliev, the continuing risk of Western sanctions against the Moscow Exchange and the National Clearing Center, as well as the dedollarization policy of the Bank of Russia, also play a role in the decline in demand for the currencies of hostile countries.

The dollar dominates MOEX trading, the report said, with 'today' settlements and an indicator of 0.74 trillion rubles ($9.8 billion). The euro and the yuan are with trading volumes of 0.5 trillion rubles ($6.6 billion) and 0.22 trillion rubles (about $3 billion), respectively.

Analysts clarified that the method of trading with delivery for "today" is mainly used for the sale or purchase of currency as part of export-import transactions, while trading with delivery for "tomorrow" The method of is used more often, including exchange. Estimate.

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Igor Zhilnikov, chief analyst at PSB, believes that the yuan will eventually become a more liquid currency, given the ongoing demonetization of the Russian economy and a shift in domestic demand for Asian currencies. He predicted that both "tomorrow" and "today" settlements would see an increase in trading volumes on the Russian stock market.