Trade with Russia promotes internationalization of the yuan

Chairman of the Association of Chinese Enterprises in Russia Zhou Liqun said that the proportion of payments in local currencies between Russia and China will increase, which meets the interests of both countries.

Russia-China trade turnover grows rapidly. (Source: Bloomberg)

The information was given by Mr. Zhou Liqun in an interview with Sputnik on the sidelines of the 26th St. Petersburg International Economic Forum (SPIEF).

"According to the data we have, so far, 70% of trade contracts between China and Russia stipulate payments in local currencies. Firstly, this contributes to the growth of bilateral trade. Secondly, it helps to reduce foreign currency risks and stabilize the yuan and ruble," he said.

According to the Chairman of the China Enterprise Association, China advocates enhancing the role of the RMB in the international market. Meanwhile, the growth of trade with Russia has just promoted the more active internationalization of this currency.

"We hope that along with the growth of Russia-China trade turnover, the proportion of payments in local currencies between the two countries will also increase," said Zhou Liqun.

Russia-China trade turnover is growing rapidly and will reach $190 billion by 2022. From January to April 2023, bilateral trade increased by 40% to $70 billion and will exceed $200 billion by the end of the year.

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