Russia is ditching the US dollar in its trade with China and India, with over 90% of its trade with China now settled in national currencies, primarily rubles and yuan ๐. More than 50% of trade with India also bypasses the dollar entirely ๐. This shift is part of Russia's "de-dollarization" strategy, driven by Western sanctions imposed after its invasion of Ukraine ๐ซ.
Russia's trade with China has skyrocketed, reaching $240 billion by 2023, with economists predicting further growth ๐. The yuan's share in Russian exports to China jumped from 0.5% in 2021 to 16% by 2022, while yuan use in imports rose from 4% to 23% over the same period ๐.
Even Russian banks are embracing the yuan, holding $68.7 billion worth of yuan by December 2023, surpassing dollar reserves ๐ธ.
