FT reported an increase in settlements in yuan in transactions between Russian businessmen and China

british newspaper Financial Times (FT) reported that amid blocked access to dollar financing due to Western sanctions, more entrepreneurs from Russia are resorting to yuan settlements in transactions with China. As an example, the publication cites the activation by Russian businessmen of trading in yuan via WeChat at the world’s largest wholesale market for small industrial goods, located in the Chinese city of Yiwu.

According to the FT, Russian citizens have become leaders in settlements in Chinese currency in the local market. “Yiwu is leading China’s efforts to make the yuan an international currency. Beijing is seeking to strengthen its role as the world’s second largest economy in the global financial system,” Dan Wang, chief economist at Hang Seng Bank in Hong Kong, told reporters.

Traders working in the market in Yiwu told the publication that in fact they have become the main beneficiaries of increased trade between Russia and China in yuan. At the same time, an unnamed Chinese official, in a conversation with the FT, admitted that Beijing is serious about the risks of possible sanctions from Western countries for violating restrictions imposed on Russia.

By information authorities of the PRC, the trade turnover between Russia and China in January-May increased by 40.7% year-on-year, to $93.8 billion. goods and services increased by 20.4%, to $50.85 billion. Russian Prime Minister Mikhail Mishustin pointed outthat 70% of cross-border settlements between Russia and China are carried out in rubles and yuan.

Alexander Kislov