Russia entered the top three countries in terms of offshore yuan payments: in August, it accounted for 4.3% of Chinese currency transactions outside of China. The leaders are Hong Kong (71.14%) and Great Britain (5.75%).
Russia entered the top three countries in terms of yuan payments abroad
Russia’s share of payment volume has grown over the past five months. As of spring 2022, the country was not in the top 15, RBC writes, citing a study by SWIFT.
According to the Moscow Stock Exchange, in August, the total trading volume in the yuan/ruble pair with calculations for tomorrow reached 1.3 trillion rubles. On average, 55.5 billion rubles worth of transactions were made on this pair per day, according to the exchange’s data.
Analysts expect the yuan’s share to rise further. This will be affected by increasing import and export operations, new EU sanctions.
The yuan may become the base currency in Russia, the country will move to second place in the main offshore centers of the yuan and eventually catch up with the United Kingdom.
The Chinese yuan in August approached the euro and the US dollar in terms of trading volume on the Moscow Stock Exchange. Their share of the total forex trading volume in July amounted to almost 20%. In monetary terms, this is 890 billion rubles.
The trading volume with the US dollar and the euro on the stock market is declining due to the sanctions, the experts explained. Companies are interested in trading the Chinese yuan due to the risks involved in owning dollars and euros.
Cover photo: Unsplash
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