In recent remarks, Russian Deputy Prime Minister Alexander Novak indicated that Moscow and Tehran are exploring mutual agreements involving the Chinese yuan. He noted that trade and payments between Russia and Iran are increasingly conducted in their respective national currencies, with the ruble and riyal accounting for a dominant majority of transactions. Novak stressed that discussions included involvement from the ministries of finance and central banks on both sides, and that the yuan is being considered as part of a broader currency diversification strategy. He emphasized that Russian banks are actively pursuing these developments as part of ongoing cooperation with Iran, as reported by RIA Novosti.
Novak further stated that more than 80 percent of exchanges between states are settled in their own currencies, while the share of euros, dollars, and other currencies remains below 20 percent. This points to a growing trend toward currency localization in international trade and a deliberate move away from reliance on a single, dominant reserve currency.
Independent analyses in March highlighted a notable shift in China’s cross-border payments, where the yuan reached a 48 percent share, surpassing the American dollar which stood at 47 percent. Observers noted that this trajectory reflects renewed momentum for the yuan in international settlements and suggested the possibility of continued gains in its role in global trade settlements. These developments come amid broader conversations about currency diversification in the global financial system, particularly among large trading partners seeking greater financial autonomy.
Commentators have also explored the strategic drivers behind a potential move away from the dollar. Experts cited several factors, including concerns over the blocking of reserve assets, questions about the pace of U.S. debt growth, and the rising appeal of the yuan as part of a multipolar currency arrangement. While opinions differ on timing and impact, the overall pattern indicates that many countries are reassessing currency exposure in order to strengthen monetary sovereignty and reduce vulnerability to external shocks. The discussion continues as analysts monitor policy signals, reserve management trends, and the evolving architecture of international finance.