(7 April 2023 – China) China’s Yuan (CNY) has replaced the US Dollar (USD) as the most traded currency in Russia, a year after the invasion of Ukraine led to slew of Western sanctions against Moscow.
The Yuan surpassed the greenback in monthly trading volume in February for the first time, and the difference became more pronounced last month according to Bloomberg data based on daily transaction reports from the Moscow Exchange.
The uptick in CNY trading volumes comes as Western sanctions continue to weigh on the Russian economy, with some 2023 measures impacting the handful of Russian banks that could still make dollar-based transactions.
The Yuan accounted for about 2.7 percent of global foreign exchange reserves at the end of 2022, International Monetary Fund (IMF) data showed. The USD accounted for 58 percent.
“Although it cannot be ruled out that the quarterly portfolio shakeout will create traction in the dollar, it is still more likely that the US currency will fall further in the coming quarters” said FxPro Senior Market Analyst, Alex Kuptsikevich.