Yuan Outperforms U.S. Dollar in Russian Trading
For the first time in history, the Chinese yuan overtook the United States dollar as the most traded currency of the Moscow Exchange, according to data published by Russian newspaper Kommersant on March 6. In February, the yuan accounted for almost 40 percent of the total volume of Russian trading in major currencies. The dollar accounted for only 38 percent of the total trading volume, marking a major decline from an 87.6 percent just one year ago.
Since the invasion of Ukraine, Russia has been hit by unprecedented sanctions from the West and shut out of much of the global economy. As a result, Russia shifted much of its trade to China, which in 2022 accounted for 40 percent of Russian imports and 30 percent of exports.
Some large Russian companies have already completely switched to trading in yuan with China, some still maintain the parity of the Chinese currency with the dollar. We expect that the share of national currencies used in trade with China will increase in the coming months.
—Mikhail Vasiliev, chief analyst at Sovcombank
Previously, Russian companies preferred to be paid in convertible currencies such as the euro and the dollar, but restricted access to these currencies as a result of sanctions forced them to accept the non-convertible yuan.
Many fear the Chinese government’s manipulation of the yuan. But the currency has proved to be capable of serving as the regional reserve currency for Russia, and it has potential to do the same for other countries as they move away from the dollar.
Saudi Arabia, the world’s largest crude oil exporter, poses a considerable threat to the current dominance of the U.S. dollar in global oil trade. On January 17, Finance Minister Mohammed al-Jadaan said Saudi Arabia was open to discussing non-dollar oil trade settlements. If oil is no longer sold in dollars, it will have drastic negative consequences for the value of the dollar.
U.S. crisis: China’s plans to make the yuan an increasingly powerful reserve currency will come at the expense of the U.S. dollar. Ultimately, we expect the dollar to be abandoned as the world’s reserve currency and America to fall to an economic siege. Bible prophecies in Isaiah 23 and Ezekiel 27 show that nations such as Europe, China, Russia and Saudi Arabia will work together to attack the United States.
In his article “China’s Most Dangerous Maneuver Ever Against America,” Trumpet editor in chief Gerald Flurry wrote about these prophecies: “[I]t is clear that the early phases of that attack will consist of an economic siege! Europe, China, Russia, Japan and other nations will lock America out of world trade!”