Yuan now the top foreign currency in Russia Forbes say
Russia took third place among countries using the Chinese yuan in international payments in July as its share on the global foreign exchange market peaked to 6.3-fold in just three months, Forbes magazine revealed, citing statistics provided by the SWIFT international payment system, Friday.
Russia accounted for 3.9% of yuan transactions in July (up from 1.42% in June), according to SWIFT’s figures cited by the publication. The UK demonstrated higher results (6.35%), whereas Hong Kong remained the leader (70.93% compared with 73.82% in June). According to SWIFT’s rating, Russia was followed by Singapore (3.77%) and the United States (2.98%).
Compared with June’s results, Russia moved up four notches, subsequently knocking out Singapore from top three ranking. Russia just entered the SWIFT rating in April when its participation in global trade using the Chinese currency was estimated at 0.62%. Since then, Russia’s share has skyrocketed six-fold, SWIFT revealed.
In July, the yuan remained one of top five most traded currencies as stated by analysts of the interbank system. Despite a decrease in the cost of transactions by 6.7% compared with June, the Chinese currency accounted for 2.2% of the total amount of international trade in July, according to analysts’ calculations.
On Thursday, trading in yuan surpassed the greenback for the first time ever, according to data disclosed on the Moscow Exchange’s website.
The rise of the Chinese yuan support the argument that sanctions are working and squeezing Russia out of the U.S. dollar-based global banking system. But it will also back those who say it will eventually make the yuan the global reserve currency outside the western system.
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