Russia Gives China’s Yuan a Boost as Firms Cope With Sanctions
Western sanctions on Russia are bolstering demand for yuan Export strength means more receipts are being settled in yuan. Such a move will boost Chinese global power and weaken the US economy.
As Xi Jinping and Vladimir Putin prepare for a likely meeting this week to cement China-Russia relations, one area where stronger economic ties are already being seen is on the currency front.
China’s yuan is proving to be a useful release valve for Russian companies hemmed in by sanctions that prevent them trading in dollars. Russian businesses are using yuan to settle more of their trade and are boosting borrowing in the Chinese currency. Moscow is also increasing holdings of yuan in its foreign-exchange reserves.
The transition of such a large economy as Russia to replace trade through American dollars in Yuan greatly strengthens China's economic status in the world. The move from US Dollars to Chinese Yuan also weakening the American monopoly on global money. What more important is, that such a move reducing the value of the main and most strategic product the United States economy is build on: the ability to print unlimited US dollars, and to buy win limited goods with money that is backed by nothing.