Russia China Trade: Ruble and Yuan Dominate, Accounting for 80% of Transactions

A significant shift in international trade is underway. More than 80% of commercial transactions between Russia and China are conducted in rubles and yuan, Russian President Vladimir Putin said at the opening of a trade summit. This move signals a departure from traditional reliance on the US dollar and strengthens economic ties between the two nations.

Vladimir Putin has touted the use of local currencies instead of the dollar for trade. At a trade summit, Putin said 80% of the Russia-China trade is now transacted in rubles and yuan, highlighting the increasing use of these currencies for bilateral transactions. Furthermore, he disclosed that over 80 percent of commercial transactions between Russia and China are conducted using the ruble and yuan. In addition,, the Russian President emphasized the growing importance of ruble and yuan settlements.

The Russia's central bank said on Thursday that the currencies from friendly countries and the ruble now account for as much as 80% of Russia's foreign trade payments. This demonstrates a concerted effort to de-dollarize trade relations and promote the use of alternative currencies.

However, some challenges remain. It said that around 80 percent of payments in yuan are being returned to Russia and the process of a transfer can go on for several weeks and then be canceled. This indicates potential friction points in the payment infrastructure and highlights the need for further optimization.

Over 80 percent of trade settlement between Russia and China is now conducted in Russian rubles and Chinese yuan, Russian President Vladimir Putin said. This statistic underscores the deepening economic cooperation between Russia and China and their commitment to using local currencies for trade settlements.