In a report released by the Bank of Russia, shares of "toxic" currencies of settlements for Russian exports dropped to 48% from a whopping 87% in 2022, and for imports from 65% to 46%. The report also found that the alternative currency of settlements besides the Russian ruble was the Chinese yuan.

The term 'toxic currency' is a term used by central banks to refer to the US dollar and the European euro. 

"At the beginning of 2022, export settlements were mainly made in the currency of unfriendly countries (87% of all settlements), mainly in US dollars and euros. The share of the yuan did not exceed 0.5%, 12% for the ruble," the bank stated, adding that at the end of this year 2023, "the share of 'toxic' currencies in payments for exports has significantly decreased, but still makes up a significant part of 48%," 

The ruble accounted for 34% of export payments while the yuan recorded 16% at the start of this year. According to the bank, the reason why there was a decline in the share of toxic currencies was in majority due to the boost in the share of yuan in settlements - going from 4% to 23%. Simultaneously, the share of the ruble for imports fell from 29% to 27%. 

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Trading volumes between the Chinese currency and the Russian ruble have grown 40-fold since the start of the year, as per Bloomberg sources.

“With hundreds of millions of dollars coming into government coffers from energy revenue each day, the government has no need to borrow now, and sales of yuan debt would serve solely as a benchmark for companies looking to tap the market,” the source was quoted as saying.

Further, the Chinese foreign ministry told TASS in March last year that it did not rule out the possibility of using rubles or yuans in energy commerce with Russia. 

As a result, Russia embracing the Chinese yuan has had an effect on several Chinese entrepreneurs, as Russian businesses might now negotiate contracts in yuan rather than the dollar or euro. This is, according to Chinese entrepreneur Wang Min, an exciting "win-win" situation for Chinese and Russian businesses.