China is using Western sanctions against Russian as an opportunity to internationalize the yuan.
China, which has been increasing the use of yuan, mainly in partner countries of China-Central Asia-Europe, signed an agreement early last month to pay 50 percent each in yuan and rubles instead of dollars for Russian gas supplied to Russia and China.
China’s Commerce Department spokesman Su Jiehting said on the 25th of last month, “Trade between China and Russia maintains strong growth momentum and will continue to promote normal economic and trade exchanges to maintain supply chain safety.”
In addition, according to SWIFT statistics, the yuan’s international payments in August increased by 9.25% from the previous month, and the proportion of payments accounted for 2.31%.
The proportion of international payments in yuan, which was only 1% until 2018, reached an all-time high of 3.2% in January.
China is making efforts to attract India and Russia to revitalize the cross-border interbank payment system (CIPS), an independent yuan payment and liquidation system that has been operated since 2015.
At a meeting of the Shanghai Cooperation Organization (SCO) last month, Chinese President Xi Jinping proposed the introduction of an independent payment and payment system among SCO members against dollar hegemony.
The Global Times predicted that the yuan will become an international payment tool in more regions due to continued internationalization efforts and long-term development momentum of the Chinese economy.
According to the Global Times and CCTV of the People’s Daily of the Communist Party of China on the 6th, the transaction between the yuan and the ruble reached 70.3 billion rubles (about 1.63 trillion won) on the Moscow exchange on the 3rd (local time), surpassing the transaction of the dollar and ruble.
The transaction volume of the euro and the ruble was only 47.5 billion rubles