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In a report published late Tuesday on financial market risks, the Bank of Russia disclosed that it had to double its offer of yuan liquidity under swap operations as a surge in Russia’s shift to using yuan in foreign trade has been dramatic. In December 2025, about one-third of Russia’s foreign trade was regularly settled in yuan. There Chinese banks are ramping up efforts to promote international use of the yuan, and reporting a surge in cross-border yuan business from the country's booming trade Harbin Bank Co, located in the Heilongjiang province of China, which borders Russia, reported a nine-fold increase in Yuan trade last year. In 2025, total assets at 28 de sept. de 2025 Russia has embraced the yuan since its invasion of Ukraine triggered western sanctions. The renminbi is now used to settle 75% of its trade with China and 25% of its transactions with other As many as 98 percent of Chinese banks are rejecting direct Chinese yuan payments from Russia, the Russian newspaper Izvestia reported Monday, citing business Chinese banks are intensifying their efforts to encourage the usage of the Yuan in international trade especially in Russia and the Middle East Moreover their efforts Hace 5 días China told its biggest banks to increase the use of the yuan in trade with foreign partners, raising the required ratio to 40% from 25%, according to Bloomberg. The People’s

Chinese Banks Report Rising Yuan-Based Trade with Russia: A Deep Dive

Trade between China and Russia is undergoing a significant shift, with Chinese banks reporting a dramatic surge in Yuan-based transactions. This trend, accelerated by Western sanctions following Russia's invasion of Ukraine, is reshaping the financial landscape and challenging the dominance of the US dollar in international trade.

The Yuan's Ascendancy in Russia: Russia has embraced the yuan since its invasion of Ukraine triggered western sanctions. The renminbi is now used to settle 75% of its trade with China and 25% of its transactions with other countries. In a report published late Tuesday on financial market risks, the Bank of Russia disclosed that it had to double its offer of yuan liquidity under swap operations as a surge in Russia’s shift to using yuan in foreign trade has been dramatic. In December 2025, about one-third of Russia’s foreign trade was regularly settled in yuan. This increasing reliance is largely driven by the need for alternative payment systems outside the reach of Western sanctions.

Chinese Banks at the Forefront: There Chinese banks are ramping up efforts to promote international use of the yuan, and reporting a surge in cross-border yuan business from the country's booming trade. This initiative is further boosted by directives from Beijing. Hace 5 días China told its biggest banks to increase the use of the yuan in trade with foreign partners, raising the required ratio to 40% from 25%, according to Bloomberg. The People’s Bank of China is actively encouraging increased Yuan usage.

Regional Impact: Harbin Bank Co, located in the Heilongjiang province of China, which borders Russia, reported a nine-fold increase in Yuan trade last year, illustrating the substantial growth in border trade settled in Yuan. In 2025, total assets at 28 de sept. de 2025. This demonstrates the tangible impact on regional financial institutions.

Challenges Remain: Despite the increasing trend, challenges persist. As many as 98 percent of Chinese banks are rejecting direct Chinese yuan payments from Russia, the Russian newspaper Izvestia reported Monday, citing business concerns. This highlights potential issues with compliance and risk management that need to be addressed to facilitate smoother transactions.

Looking Ahead: Chinese banks are intensifying their efforts to encourage the usage of the Yuan in international trade especially in Russia and the Middle East Moreover their efforts will likely continue. The ongoing shift towards Yuan-based trade represents a significant development in the global financial order, and its long-term implications remain to be seen. This trend warrants close monitoring as it could potentially reshape the balance of power in international finance.

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