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China and Russia have almost completely phased out the dollar from their bilateral trade. More than 90% of trade between the two nations is done with either the yuan or The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar. Russia's finance ministry and central bank released a BRICS’ Russia is ditching the US Dollar in favor of the Chinese Yuan for trade, according to its central bank. The country has spearheaded de-dollarization efforts While there are growing concerns among the Brics bloc of emerging economies over the scope of financial sanctions from the United States, few countries in the On Russia's foreign exchange markets, the ruble-yuan trade accounted for 39% of total volumes, outpacing the ruble-dollar's 34% share, the central bank added. The

BRICS Russia Central Bank Ditches US Dollar for Chinese Yuan: A Major Shift in Global Finance

Russia's central bank is spearheading de-dollarization efforts within the BRICS nations, making a significant move by favoring the Chinese Yuan in international trade. This decision reflects a growing trend among BRICS economies to reduce reliance on the US dollar amid increasing concerns about financial sanctions from the United States. According to its central bank, BRICS’ Russia is ditching the US Dollar in favor of the Chinese Yuan for trade.

China-Russia Trade Increasingly Yuan-Denominated

China and Russia have almost completely phased out the dollar from their bilateral trade. More than 90% of trade between the two nations is done with either the yuan or their respective national currencies. This shift demonstrates a deliberate strategy to lessen dependence on the US dollar in international commerce and strengthen economic ties between the two countries.

The BRICS Cross-Border Payment Initiative (BCBPI)

The BRICS Cross-Border Payment Initiative (BCBPI) will use national currencies, instead of the US dollar, facilitating smoother and more independent trade among BRICS members. Russia's finance ministry and central bank released a statement highlighting this initiative, emphasizing the increasing importance of using national currencies in international settlements.

Yuan Overtakes Dollar in Russian Forex Market

The growing influence of the Yuan in Russia's financial system is evident in foreign exchange markets. On Russia's foreign exchange markets, the ruble-yuan trade accounted for 39% of total volumes, outpacing the ruble-dollar's 34% share, the central bank added. This significant shift illustrates the declining dominance of the US dollar and the increasing acceptance of the Chinese Yuan in Russian financial transactions.

Implications for the Global Financial Order

The move by the BRICS Russia central bank to ditch the US dollar for the Chinese Yuan has broader implications for the global financial order. While there are growing concerns among the Brics bloc of emerging economies over the scope of financial sanctions from the United States, the de-dollarization trend suggests a potential rebalancing of economic power and a shift towards a multi-polar currency system. This is not just a Russian phenomenon but part of a wider BRICS strategy.

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