In 2023, the trading volume of the Chinese yuan on the Moscow Exchange surpassed that of the US dollar due to Moscow’s de-dollarization strategy, implemented in response to Western sanctions on its financial system.
Moscow’s growing reliance on Beijing strengthens the “no limits” partnership. Russia has increased its energy exports to China and boosted imports of Chinese products, from automobiles to smartphones. This shift follows the withdrawal of European and U.S. brands from Russia due to the Ukraine conflict.
The yuan represented nearly 42% of all foreign currency trades on the Moscow Exchange in 2023. Its trading volume more than tripled year-on-year, reaching 34.15 trillion roubles ($391.5 billion). In contrast, the dollar’s share dropped to 39.5%, down from a 63% share in 2022. The Moscow Exchange declined to provide this data to Reuters.
Russia’s New Trade Directions
Facing restrictions on trading in currencies deemed “unfriendly” like the dollar and euro, Russia is diversifying its trade relationships. China’s use of the yuan for purchasing Russian commodities has surged.
Sino-Russian two-way trade reached a record $240 billion in 2023, a 26.3% increase from the previous year. Russia has also increased imports invoiced in yuan and seen growth in over-the-counter trading of the Emirati dirham and Indian rupee, although exchange trading in these currencies is yet to commence.
