Russia seeks to reduce US dollar reliance with Chinese yuan purchases

Recently, the Bank of Russia announced an ambitious plan for the future of its currency. If the country's oil and gas revenues meet expectations, then the Bank of Russia will purchase yuan on the currency market in 2023. According to Reuters, the Bank of Russia has set a benchmark of 8 trillion rubles in budget revenues from oil and gas exports as the benchmark for triggering the purchase.

Russia's exposure to the Chinese yuan has been increasing in recent years, with the yuan's share of the Russian currency market reaching 45%, a drastic increase from less than 1% earlier in the year. Yuan-ruble trading volumes have been so large that on some days, they have even surpassed dollar-ruble trades.

The Bank of Russia's plans for the future of its currency demonstrate an openness to new possibilities and a willingness to invest in the growth of the economy. With the potential to increase the presence of the yuan in the Russian currency market, this could be a major step forward for the country and its citizens.


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