In a significant shift away from the US-led global financial system, Russia and China have achieved nearly complete de-dollarization in their bilateral trade, with over 90% of transactions now being conducted in their respective national currencies, the ruble and the yuan. This milestone is a part of a broader strategy by both nations to reduce dependency on the US dollar and strengthen their financial sovereignty.
Russian Prime Minister Mikhail Mishustin highlighted this achievement, emphasizing that it demonstrates almost complete de-dollarization of economic ties between the two countries. In 2023, trade between Russia and China saw a substantial increase, growing by 26% to reach $240 billion. This growth can be partly attributed to the Western sanctions imposed on Russia following its invasion of U-----e, which have pushed Moscow to seek closer economic ties with Beijing.
This trend continued in 2024, with the trade volume between the two nations increasing further to set a new record of $200 billion in transactions. Moreover, Chinese banks operating in Russia have stopped processing trade settlements in dollars and euros, driven by new US sanctions. This shift to over-the-counter trading has complicated access to reliable pricing for the Russian currency.
The Moscow Exchange reported that the yuan became the most traded currency, surpassing the US dollar. A significant portion of foreign currency trading is now dominated by the yuan, indicating a broader trend among BRICS nations to reduce reliance on the US dollar. Discussions about establishing a new BRICS currency to rival the greenback have gained momentum in recent years.
This move towards de-dollarization is a significant development in the global financial landscape, even though the US dollar remains dominant in global financial markets. These efforts by Russia and China represent a substantial step towards diversifying their economic partnerships and establishing a more multipolar financial system.
As both nations continue to strengthen their financial ties, the rest of the world watches with great interest. Decreasing reliance on the US dollar may signal a power shift in global finance, with countries seeking to regain control over their financial sovereignty and reduce vulnerability to US-led economic sanctions. The success of Russia and China’s de-dollarization strategy may encourage other nations to follow suit and contribute to the further diversification of the global financial system.
In conclusion, the trend towards de-dollarization between Russia and China is a crucial development in the global financial landscape. With nearly complete de-dollarization of bilateral trade and a surge in the trading volume, both nations are taking significant steps towards financial sovereignty. As they continue to lead the way in de-dollarization, the rest of the world will be watching closely to see the potential implications and opportunities this shift may bring.
Watch the video below from Fastepo for more information.
Advertisement
______________________________________________________
______________________________________________________
If you wish to contact the author of a post, you can send us an email at voyagesoflight@gmail.com and we’ll forward your request to the author (if available). If you have any questions about a post or the website, you may also forward your questions and concerns to the same email address.
______________________________________________________
All articles, videos, and images posted on Dinar Chronicles were submitted by readers and/or handpicked by the site itself for informational and/or entertainment purposes.
Dinar Chronicles is not a registered investment adviser, broker dealer, banker or currency dealer and as such, no information on the website should be construed as investment advice. We do not support, represent or guarantee the completeness, truthfulness, accuracy, or reliability of any content or communications posted on this site. Information posted on this site may or may not be fictitious. We do not intend to and are not providing financial, legal, tax, political or any other advice to readers of this website.
Copyright © Dinar Chronicles
