A few days ago, I saw a news article stating that the Chinese yuan accounts for almost 100% of foreign exchange trading in Russia.After carefully reviewing the relevant data, I found that in just six months, the proportion of RMB in Russia's foreign exchange market has skyrocketed from 42% to 99.6%, with an astonishing speed.

The Chinese yuan has taken over Russia.

A few days ago, I saw a news article stating that the Chinese yuan accounts for almost 100% of foreign exchange trading in Russia.

After carefully reviewing the relevant data, I found that in just six months, the proportion of RMB in Russia's foreign exchange market has skyrocketed from 42% to 99.6%, with an astonishing speed.

At this moment, it is not an exaggeration to say that the Chinese yuan has taken over Russia's foreign exchange market.

This means that for Russians, the Chinese yuan has almost become their only officially designated foreign currency, and demand is rapidly increasing.

Readers may wonder why the proportion of RMB trading in the Russian foreign exchange market has risen so rapidly this year?

This is also thanks to the secondary sanctions imposed by the United States on financial institutions in December 2023, which made it difficult for the US dollar and euro to be conveniently used in Russia's foreign trade, allowing the Chinese yuan to take advantage of the situation.

According to the official website of the Russian Central Bank, on June 14th of this year, the Russian Foreign Exchange completely closed trading in foreign currencies and precious metals such as the US dollar, European yuan, and Hong Kong dollar.

There is another very important reason.

Starting from the sanctions in December 2023, the Chinese yuan has become particularly scarce within Russia, with overnight interest rates even reaching an annualized level of 31%. Therefore, last Tuesday (July 9th), the Russian central bank released a financial market risk report specifically mentioning that due to the termination of the US dollar and euro swap agreement, the interest rate of the Chinese yuan has surged again.  

The final outcome is still unknown. But one thing is certain, in the past six months, the Chinese yuan has become very scarce in the Russian market and has almost become the only official foreign currency in Russia.

At this moment, it is not an exaggeration to say that the Chinese yuan has taken over Russia's foreign exchange market.

This means that for Russians, the Chinese yuan has almost become their only officially designated foreign currency, and demand is rapidly increasing.

Readers may wonder why the proportion of RMB trading in the Russian foreign exchange market has risen so rapidly this year?

This is also thanks to the secondary sanctions imposed by the United States on financial institutions in December 2023, which made it difficult for the US dollar and euro to be conveniently used in Russia's foreign trade, allowing the Chinese yuan to take advantage of the situation.

According to the official website of the Russian Central Bank, on June 14th of this year, the Russian Foreign Exchange completely closed trading in foreign currencies and precious metals such as the US dollar, European yuan, and Hong Kong dollar.

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Mr. Na Ren

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