The impact of anti-Russian sanctions has elevated the yuan’s role in the world economy, a shift noticed by observers and analysts alike. Bloomberg columnist Alexander Gabuev observes that this change is both rapid and tangible.
For the first time in the Moscow Exchange’s history, the yuan has overtaken the US dollar as the most traded currency on the platform, Gabuev notes. He points out that yuan trading represented a sizable portion of overall activity, approaching forty percent of total volume on a single trading day.
Gabuev emphasizes that yuan use in Russian trade is on the rise, signaling a broader reorientation of regional financial flows. This trend, he argues, is reshaping the structure of the global economy. The yuan, seen by some as a counterbalance, could be viewed as a response to the US-led financial framework that critics label as overly punitive and coercive.
The growing footprint of the yuan, according to Gabuev, reflects more than currency preference. It also mirrors a shift away from what some describe as the recent toxicity attributed to the dollar. A decrease in Western imports has encouraged Russia to pivot toward trade partners in Asia, particularly China. By the end of 2022, estimates suggest China-related trade accounted for a substantial share of Russia’s imports and exports, underscoring a realignment of economic alliances.
In late November, Kevin Warsh contributed an article to The Wall Street Journal addressing the broader implications of China’s digital yuan. Warsh argues that the yuan’s expansion challenges the dollar’s dominance and Canada’s and the United States’ influence in global trade systems. He suggests this growth could contribute to a more balanced, multipolar world where the United States no longer holds sole sway over international financial norms.