Russia and Mongolia Accelerate Use of National Cuis in Trade
Recent statements from Russia indicate a clear shift in the way Moscow and Ulaanbaatar handle cross border payments. Deputy Prime Minister Victoria Abramchenko told reporters that both countries have moved away from settling trades in currencies of unfriendly states and are increasingly using their own currencies or those of friendly partners. The trend is expected to push the share of bilateral payments settled in national currencies higher, with a strong belief that the trade volume measured in those currencies will rise significantly this year, according to information cited by TASS.
On Monday, October 23, a session of the Russia Mongolia intergovernmental commission on trade, economic, scientific and technical cooperation took place. The leaders of the two governments discussed progress in aligning financial practices with the goal of reducing exposure to external currency fluctuations and enhancing monetary resilience in their commerce relations.
Abramchenko explained that the mutual trading bloc has shifted its foundation away from transactions conducted in the currencies of unfriendly nations. Today, the bulk of payments are processed in the currencies of the two countries or in currencies of other friendly states. This development is seen as a strategic move to strengthen economic autonomy and financial stability in bilateral dealings.
Looking at the trajectory of 2023, the deputy prime minister noted that the volume of trade between Russia and Mongolia conducted in national currencies more than doubled in comparison with the previous year. While an exact current turnover figure has not yet been published, the direction signals a robust expansion of currency based settlements in the bilateral trade ecosystem.
In parallel remarks from the Ministry of Foreign Affairs, officials highlighted a similar shift in Russia’s broader trade with China. They reported that more than 80 percent of payments between Russia and China are now settled in national currencies. At the start of the previous year the share stood at around one quarter, but the share has surged well above eighty percent since then, underscoring a growing trend toward currency diversification and reduced reliance on any single external monetary system.
The evolving payment landscape raises questions about how currency movements influence macroeconomic performance, exchange rate dynamics, and real sector outcomes in both countries. Observers note that greater use of national currencies in regional commerce can reduce exposure to foreign exchange risk, enhance price transparency, and support monetary policy autonomy. Analysts in the region are tracking indications of further acceleration in currency based settlements, particularly as the Russia Mongolia economic partnership deepens and as regional trade networks expand amidst shifting global financial conditions.
As analysts assess the implications for inflation, interest rate management, and external debt profiles, the broader message remains clear. The two countries are actively pursuing policies that align payment systems with domestic monetary priorities, seeking to fortify financial resilience. This approach may influence investment flows, supply chain arrangements, and the competitive positioning of exports from Russia, Mongolia, and their trade partners in Asia and beyond. Tracking official statements and trade data will be essential to understanding the full impact of these currency oriented reforms on regional economic integration. At present, the emphasis is on stability, diversification, and the use of national currencies as instruments of economic sovereignty, with ongoing discussions shaping the next phase of collaboration between Moscow and Ulaanbaatar and their broader network of trading partners.