During the second quarter of 2023, more than half of the payments for electronics and home appliance deliveries to Russia were made in Chinese yuan rather than dollars or euros, according to newspaper reports citing unnamed sources. This shift reflects a broader move in which buyers and sellers in the region increasingly consider currencies other than the traditional reserve currencies for cross-border trade, a trend observed by several market observers.
A person familiar with a major retail chain noted that the share of payments in national currencies for imports of equipment and electronics is rising. The shift is not limited to the yuan; currencies from the Commonwealth of Independent States also appear more frequently in settlement schemes. The explanation offered is that these currencies exhibit lower volatility than the dollar or the euro, potentially reducing the exchange-rate risk that accompanies international transactions and price volatility for imported goods.
Industry insiders emphasize that the choice of currency can vary with the product category and the geographic delivery routes involved. For instance, when importing high-end devices like iPhones from Middle Eastern suppliers, payments are typically settled in dollars, underscoring the nuanced approach buyers take depending on origin and product type.
Experts point to the yuan’s perceived advantages: greater transparency and predictability, speed of settlements, and resilience against external pressure from foreign financial institutions that might otherwise complicate or delay payments. Such characteristics are highlighted as contributing to a smoother payment experience for importers operating under variable geopolitical conditions.
One company engaged in cross-border purchasing reported a rising contribution of yuan settlements. The reasoning cited is that some foreign banks, which enable Russian importers to settle accounts with overseas equipment sellers, increasingly refuse to process payments in dollars and euros. In addition, there are reports of prolonged verification procedures and periodic freezes of funds in accounts, factors that push buyers toward alternatives that promise quicker confirmation and fewer interruptions.
Recent discussions have noted that the yuan has begun to gain an official foothold in international payments routed through SWIFT, reflecting a gradual diversification of currency use in global trade. The share noted in the past eighteen months reached around 2.54 percent, marking a notable shift in the landscape of cross-border settlements and signaling market participants’ receptivity to yuan-denominated transactions as a complement to the traditional reserve currencies.
Policy developments in Russia and broader sanctions landscape remain a backdrop to these changes. The United States Treasury has maintained pressure with extended sanctions measures, while market participants continue to assess how restrictions and enforcement actions influence currency choice, risk management, and the availability of clearing options for foreign trade operations. Attribution: market observations compiled from multiple industry briefings and financial reports.