The Chinese yuan became the most traded currency on the Moscow Stock Exchange for the first time on Monday, with trading turnover in the yuan-ruble pair reaching 70.3 billion rubles ($1.17 billion), exceeding 68.2 billion rubles for the dollar-ruble pair, according to a report by Russian news agency RosBiznesConsulting (RBC) on Wednesday.
The report said a total of 64,900 transactions were made using the yuan-ruble pair, compared to 29,500 for the dollar-ruble pair on the same day. The yuan also overtook the trading of the euro-ruble pair, which registered a trading volume of 47.5 billion rubles.
The popular status of the Chinese yuan on the Moscow Stock Exchange remained unchanged on Tuesday, with trading volume for the yuan-ruble pair reaching 63.9 billion rubles (a total of 46,000 transactions), and that of the dollar- ruble amounting to 59.4 billion rubles. (21,500 transactions) at the close, according to a report from China Central Television on Wednesday.
Yuan-denominated assets are gaining popularity in the Russian market as two-way trade has grown in recent years. In the first eight months of 2022, trade between China and Russia totaled $117.2 billion, up 31.4 percent year on year, according to data from the General Administration of China Customs.
Shu Jueting, spokesperson for the Ministry of Commerce, said on August 25 that bilateral trade between the two countries has maintained strong growth momentum, and the two sides will continue to promote normal economic and trade exchanges and maintain the stability of trade. industrial and supply chains.
In early September, China and Russia reportedly signed an agreement to shift trade payments for gas supplies to China to the yuan and ruble on a 50-50 split basis, instead of the dollar, opening up the way to a more frequent use of the ruble and the yuan. in bilateral trade.
Outside of Russia, the yuan has also been increasingly used in global trade and settlements amid continued internationalization of the yuan and bullish global views on the long-term development momentum of the economy. Chinese.
According to data from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) global payment services, the Chinese yuan maintained its position as the fifth most active currency for global payments by value in August, accounting for a 2.31% share. .
In August, the overall amount of payments made in yuan jumped 9.25% month-on-month, according to SWIFT data.
The IMF’s latest report showed that the Chinese yuan accounted for 2.88% of global currency reserves in the second quarter of 2022, ranking fifth in the world and maintaining its highest global reading since the data was first released in 2016.
With the credibility and reputation of the US dollar system more at risk of collapsing due to Washington’s irresponsible monetary policy, dedollarization is seen as an upcoming global trend, with more markets likely to recognize the downward trend. internationalization of the yuan in the long term, Chen Jia, a researcher at the International Monetary Institute of Renmin University of China, told the Global Times on Wednesday.