Chinese yuan Photo:VCG

The trade between China and Russia using yuan or rubles has climbed up quickly to account for more than 70 percent of their trade, as more countries are calling for trade to be carried out in their own currencies, and using the yuan as an alternative to the US dollar.

More than 70 percent of trade between China and Russia is settled in yuan and roubles now. The ratio has expanded from the 30 percent about two years ago, Anton Siluanov, Russian Minister of Finance, told a forum on Monday.

Siluanov said that the use of rubles and yuan for trade settlement is Russia's top priority and is "mutually beneficial" and "reliable" for both countries, Xinhua News Agency reported. 

According to data from the General Administration of Customs of China, the bilateral trade volume between China and Russia hit a record $190.27 billion in 2022, a year-on-year increase of 29.3 percent.

Russia isn't the only country calling for a shift away from using US dollar.

China and Brazil have recently announced a deal to settle their trade in their own currencies, dropping the dollar as an intermediary. The move is expected to reduce costs, facilitate greater trade and promote bilateral investment. 

According to Chinese Customs, the bilateral trade between China and Brazil hit $171.49 billion in 2022, a year-on-year increase of 4.9 percent.

During an official visit to China in April, Brazilian President Luiz Inacio Lula da Silva urged abandoning the dollar in favor of using own currencies.

According to Bloomberg, the Brazilian president called on the BRICS countries to find an alternative to US dollar in settling trade.

At present, more than 30 countries are switching to the yuan for foreign trade settlement or investment, according to a report from Guotai Junan Futures in March.

The trend shows that the foundation of the US dollar hegemony starts to unravel, as the US government's reckless sanctions on other countries has compromised the security of the dollar, Dong Dengxin, director of the Finance and Securities Institute of the Wuhan University of Science and Technology, told the Global Times on Tuesday. 

"I think this trend will not stop for the time being. It will eventually lead to the continuous shrinking of the dollar's share in international settlements. In turn, it will boost the share of the yuan in international settlements and enhance the status of yuan as an international reserve currency," Dong said.

The status of the yuan as an international reserve currency is gaining pace. According to the Currency Composition of Official Foreign Exchange Reserves data released by the IMF, in the fourth quarter of 2022, the proportion of the yuan in global foreign exchange reserves was 2.69 percent, ranking fifth-largest in the world. 

Global Times