In a significant geopolitical move, Russian President Vladimir Putin announced during his meeting with Chinese President Xi Jinping that most trade between Russia and China is now conducted using their own currencies—the ruble and the yuan—bypassing the US dollar.
This shift, a direct response to Western sanctions and growing tensions with the U.S., signals a deeper alignment between the two powers and a push to build a parallel financial system less dependent on Western institutions.
🧾 In 2023, Russia–China trade hit a record $240 billion. Over 90% of that trade was settled in national currencies.
Why This Matters:
- Forex Impact: More yuan-ruble transactions could mean volatility—and opportunity—for traders.
- Global Finance Shift: A dent in the dollar’s dominance could alter commodity pricing, especially in oil and gas.
- Investor Insight: Watch energy markets and emerging economies adapting to this eastward shift in trade dynamics
As Russia and China strengthen economic ties and promote financial sovereignty, the world might be witnessing the early stages of a multi-polar currency system.
