FT: The share of the yuan in world trade has risen from 2% to 4.5% since 2022
In 2022, the yuan’s share in world trade has doubled from 2% to 4.5%. informed Financial Times with reference to data from the SWIFT international interbank information transfer system. As a result, the Chinese currency has moved closer to being a competitor to the euro, which occupies 6% of the market.
The rising popularity of the yuan has been influenced by its widespread use in commerce China And Russia. This was also caused by the increase in the cost of funding in dollars following the rate hike. Federal Reserve System (FRS) UNITED STATES.
Analysts call the success of the Chinese currency a boon for beijing, which aims to accelerate the internationalization of the yuan. It is also a serious challenge for Western countries which, through sanctions, are trying to ban Russia from using SWIFT. Through the use of the alternative payment system Cips, trade between the two countries reached a record high of $185 billion in 2022. The total settlement volume of Cips in 2022 was 97 trillion yuan (14 trillion dollars), up 21% over the previous year.
During a meeting with the Chinese President Xi Jinping President of Russia Vladimir Poutine notedWhat Moscow supports the idea of using the Chinese yuan in international trade. According to him, now two-thirds of trade turnover between the two countries is carried out in rubles and yuan, and this practice must be encouraged and extended. Chinese currency can be used to pay for deliveries from Russia to countries in Asia, Africa, Latin America, added the head of state.
Old Chinese edition of the Global Times declaredthat the United States is engaged in the use of the dollar as an instrument of coercion in the world, thus reinforcing the trend of dedollarization and contributing to the loss of its domination on the world stage. The authors noted that the United States has weaponized dollar hegemony, allowing it not only to arbitrarily impose unilateral sanctions, but also to transfer its own economic risks onto the shoulders of the rest of the world through a monetary monopoly.