Russian Prime Minister Advocates Yuan Amid Dollar Sanctions

The Chinese yuan has recently surpassed the United States dollar as the most traded currency in Russia, with a significant increase in trading volumes. This shift comes at a time when Russia is facing multiple sanctions from the West, particularly the US, due to its actions in Ukraine.

Recent data reveals that 42% of currency trades in Russia are now conducted in yuan, compared to 39.5% in the US dollar. The trading volumes for the yuan have tripled, reaching $385 billion in 2023, indicating a growing preference for the Chinese currency.

In response to the sanctions imposed on it, Russia is exploring alternative options to carry out international transactions. One such alternative is the use of the Chinese yuan for foreign trade and offshore transactions, as a means to reduce reliance on the US dollar.

Russian Prime Minister Mikhail Mishustin has been advocating for a shift away from the dollar, promoting the concept of 'de-dollarisation'. He has urged oil-producing countries in the Middle East to consider using national and regional currencies instead of the US dollar for transactions.

With the increasing adoption of the yuan in Russia and the push for de-dollarisation, it is evident that the global currency landscape is undergoing significant changes. This trend highlights the shifting dynamics of international trade and the efforts of countries to diversify their currency holdings.