Russian Energy Business Forum Chairman Sechin said that in recent years, trade between Russia and China has almost completely shifted to using local currencies, with the share of US dollars and euros reduced to the level of statistical error. According to Sechin, since 2010, the share of the Chinese yuan in China's foreign trade has increased from 2% to 52%, while the share of the US dollar has almost halved, dropping from 83% to 43%.
The share of the Chinese yuan in China's foreign trade has risen from 2% in 2010 to 52% currently; the share of the US dollar has dropped from 83% to 43%.
The direct driver of this data is the Western sanctions against Russia, which have been a key catalyst. The United States' act of "weaponizing" the US dollar has undermined its credibility as a payment tool and reserve currency.
Political trust and infrastructure are guarantees. Both sides have promoted high-level interactions and have already connected their cross-border payment systems (CIPS and SPFS) in advance.
From an industry example, crude oil transactions between Russian Oil Company (Rosneft) and China National Petroleum Corporation have already switched to using local currencies for settlement.
The Russian-Chinese model highly depends on special political trust and technical preparation made years in advance. Whether this model can be easily replicated in other bilateral trades such as in the BRICS countries remains unknown.
The share of the Chinese yuan in Russian export settlements has exceeded one-third, but this more reflects choices under specific pressures. For the Chinese yuan to become a true global currency that can rival the US dollar, it still needs broader recognition and use in the international market.
Original: www.toutiao.com/article/1849890167928844/
Statement: This article represents the views of the author himself.