Share of Yuan on Russia's exchange market reaches 39% in March

By Al Mayadeen English
Source: Agencies
10 Apr 2023 21:32

This marks the highest share of Yuan Russia's exchange market has ever had.

© Sputnik / Alexandr Demyanchuk

The Russian Central Bank said on Monday that the share of the Chinese Yuan on the Russian exchange market increased to 39% in March.

This marks the highest share of Yuan Russia's exchange market has ever had.

On another note, the share of US dollars was recorded at 34% in March, as per the Russian Central Bank.

"The share of transactions with the dollar-ruble currency pair decreased to 34% (in February - 36%). The total share of the yuan (yuan-ruble and dollar-yuan) on the exchange market increased in March to 39% (in February - 37%) of the total trade, which became another record value," the bank’s review of financial market risks read.

An analysis written by Frank Holmes for VettaFi revealed on Monday that the greenback is unlikely to lose its status as the world's global reserve currency any time soon despite that trends of de-dollarization have picked up speed over the past year.

Even though several countries across the world have been recalibrating their trade policies so as to substitute the US dollar with other currencies, the US dollar maintains its reputation as the safest and most convenient currency in the world.

As Holmes pointed out in his piece, the share of global central banks' official holdings in US dollars currently stands at 60% nowadays, while that of the Yuan is a mere 2.8% as of September 2022.

A stark difference indeed, but it is worth appreciating the fact that in the span of 20 years, the share of US dollars fell sharply as it stood at 72% in 2001. China, on the other hand, has had its own share double since 2016.

The case in point is obvious. The credibility of the dollar remains unquestionable, although no predictions can foretell that it may remain the case in the long run. The reason, Holmes explains, is that the strength of the US dollar lies in the dollar-commodity relationship, whereby the price of oil is quoted in US dollars.