According to the Carnegie Russia-Eurasia Center based in Germany, the latest US sanctions against Russia are expected to strengthen the position of the Chinese yuan as main currency in Russian trade. Employee Alexandra Prokopenko noted that the new sanctions are expected to strengthen the yuan’s position relative to Western currencies.
Prokopen emphasized that while the dominance of the dollar remains unquestionable, fragmentation of the global financial is irreversible. The recent restrictions are aimed at Russia’s financial infrastructure, including the Moscow Stock Exchange, which subsequently ceased trading in dollars and, complicating Russians’ access to Western currencies and potentially leading to different exchange rates forles.
Forecasts indicate that these measures will solidify the yuan as a primary currency for and payments in Russia. By May, 53.6% of stock trading and 39.2% of over-the-counter market transactions in Russia were denominated in Chinese currency. Prokopenko believes that it is precisely because of this that new sanctions will consolidate domestic dominance for Chinese currency.