HomeMediaLatest NewsThe yuan continues to take market share of the dollar and euro

The yuan continues to take market share of the dollar and euro

24 July 2023

Tanasova Anna S. Deputy Head of the Financial analysis Department, Head of the Financial research sector

Anna Tanasova commented to the portal "Mail.ru.Finance" on the role and potential of the yuan in the development of relations between Russia and other countries.

What the experts say

As for the fact that the yuan in Russia is not getting cheaper against the ruble, although it should be. The fact is also that the ruble is essentially not given the opportunity to become more expensive to other currencies and to the yuan, too. It is obvious that the depreciation of the ruble makes it easier to finance the budget and the non-appreciation of the yuan also makes it possible to capitalize export earnings into a larger ruble equivalent more efficiently. Moreover, over the past five years we have had a positive trade balance with China, i.e. the phenomenon is quite stable.

Anna Tanasova, Expert of the Institute of Energy and Finance

"Despite the importance of expanding trade in yuan, we need to promote the ruble in mutual settlements with China. In order to avoid distortions with the exchange rates, it is important to keep in mind that the bilateral balance must be reached, otherwise an unused balance in the corresponding currency may accumulate. This will balance both the commodity and the foreign exchange market," the economist explained.

The popularity of the yuan in foreign markets — offshore currency and country — is growing. Transfers in yuan are growing.

"In general, the expansion of the national currency use in foreign trade will inevitably form offshore trade in this currency. It is more difficult to influence the exchange rate on offshore markets than on the national market. We also need to take into account such risks," Anna Tanasova said.

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