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Chinese yuan becomes most traded foreign currency on the Moscow Exchange, surpasses the US dollar

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Chinese yuan becomes most traded foreign currency on the Moscow Exchange, surpasses the US dollar

By Global Times
Published: Oct 05, 2022 08:49 PM

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The Chinese yuan became the most traded currency on the Moscow Exchange for the first time on Monday, with trading turnover in the yuan-ruble pair reaching 70.3 billion rubles ($1.17 billion), surpassing the 68.2 billion rubles for the dollar-ruble pair, according to a report from Russian informational agency RosBiznesConsulting (RBC) on Wednesday.

The report said a total of 64,900 transactions were made using the yuan-ruble pair, compared with 29,500 for the dollar-ruble pair on the same day. The yuan also overtook trading in the euro-ruble pair, which recorded a trading volume of 47.5 billion rubles.

The popular status of the Chinese yuan on the Moscow Exchange remained unchanged on Tuesday, with volume of trading for the yuan-ruble pair reaching 63.9 billion rubles (in total 46,000 transactions), and that of the dollar-ruble pair standing at 59.4 billion rubles (21,500 transactions) as of close, according to a report from China Central Television on Wednesday.

Yuan-denominated assets are gaining favor in the Russian market as bilateral trade has gained momentum over recent years. In the first eight months of 2022, trade between China and Russia totaled $117.2 billion, up 31.4 percent year-on-year, according to data from China’s General Administration of Customs.

Shu Jueting, a Ministry of Commerce spokesperson, said on August 25 that bilateral trade between the two countries is maintaining strong growth momentum, and the two sides will continue to promote normal economic and trade exchanges and maintain stability of industrial and supply chains.

In early September, China and Russia reportedly signed an agreement to switch trade payments for gas supplies to China to the yuan and the ruble based on a 50-50 split, instead of the dollar, paving the way for a more frequent ruble-yuan usage in bilateral trade.

Outside of Russia, the yuan has also been increasingly used in global trade and settlements amid the steady internationalization of yuan and bullish global views on the long-term development momentum of the Chinese economy.

According to data from global payment services the Society for Worldwide Interbank Financial Telecommunication (SWIFT), the Chinese yuan has retained its position as the fifth most active currency for global payments by value in August, accounting for a 2.31 percent share.

In August, the overall amount of payment made with yuan jumped 9.25 percent month-on-month, SWIFT data showed.

The latest report from IMF showed that the Chinese yuan accounted for 2.88 percent of global foreign currency reserves in the second quarter of 2022, ranking fifth worldwide and maintaining its highest global reading since data was first released in 2016.

As the credibility and reputation of the US dollar system is at a higher risk of collapsing due to Washington’s irresponsible monetary policy, de-dollarization is viewed as a forthcoming global trend, with more markets likely to recognize the yuan's internationalization trend over the long run, Chen Jia, a research fellow with the International Monetary Institute of the Renmin University of China, told the Global Times on Wednesday.

 
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the Chinese yuan has retained its position as the fifth most active currency for global payments by value in August, accounting for a 2.31 percent share.

Wow dayum that's a lot! Considering that Moscow is the premier financial center in the world where the top financial institutions trade there, the Yuan is going to surpass the USD anytime soon!
 
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Wow dayum that's a lot! Considering that Moscow is the premier financial center in the world where the top financial institutions trade there, the Yuan is going to surpass the USD anytime soon!
Wasn't it 3.81% some time ago??
 
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Wow dayum that's a lot! Considering that Moscow is the premier financial center in the world, the Yuan is going to surpass the USD anytime soon!
Trolling, globally Yuan is a very new comer, couples of years ago yuan was still toy money, but along with China's economic progress, Yuan has already gained remarkable traction on the world stage in merely couples of years, something people wouldn't have dreamed of even 5 years ago.
 
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The Chinese yuan became the most traded currency on the Moscow Exchange for the first time on Monday, with trading turnover in the yuan-ruble pair reaching 70.3 billion rubles ($1.17 billion)

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The global fx market has a daily trading volume of $6.6tril.

As Moscow is one of the top financial centers in the world, its top trading pair turnover of $1.17bil accounts for a whooping 0.018% of global trading volume! That's a major milestone in the process of global de-dollarization, like the Global Times has been saying for years!


As the credibility and reputation of the US dollar system is at a higher risk of collapsing due to Washington’s irresponsible monetary policy, de-dollarization is viewed as a forthcoming global trend, with more markets likely to recognize the yuan's internationalization trend over the long run, Chen Jia, a research fellow with the International Monetary Institute of the Renmin University of China, told the Global Times on Wednesday.
 
. . . .
US can't depend on printing money to get it going forever, soon more and more countries will wake up to this dollar bully and fight back. US capability to make goods is getting weaker by every passing year, in one or two decades US will basically produce nothing tangible, it is digging its own grave now.
 
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US can't depend on printing money to get it going forever, soon more and more countries will wake up to this dollar bully and fight back. US capability to make goods is getting weaker by every passing year, in one or two decades US will basically produce nothing tangible, it is digging its own grave now.
Why Chinese don't work to strengthen their currency? They have the capability to do so,

China is still afraid of any move that will be perceived by the west as "threatening".

Maybe in few decades ....
 
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