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Ripoti mbalimbali zinadai kuwa Benki kuu za Urusi na Uchina zimeanza kuondoa akiba ya dola ya Marekani katika hifadhi yake huku biashara zake nyingi zikiendeswa kwa Yuan ya China. Kuhama huku kutoka kwenye dola kumechochewa na vikwazo vilivyowekwa dhidi ya Urusi kwa kuivamia Ukraine.
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Just days before Russia’s brutal invasion of Ukraine began in 2022, we warned that Russia and China’s collaboration on dedollarization—the process of reducing an economy’s reliance on the US dollar for international trade and finance—would not sanction-proof Russia’s economy. And it did not. As a result of unprecedented Western sanctions, Moscow overnight became unable to transact in dollars and euros—the world’s dominant currencies.
Russia has since pursued alternatives to manage its trade and reserves. Chinese yuan and gold became the stars of the show, but both introduced new vulnerabilities and inconveniences. Yuan makes Russia dependent on Beijing’s goodwill, while gold is not as sanctions-proof as Moscow expected, and Russia has had a hard time scaling up its illicit gold trade.
Yuanization creates new vulnerabilities
In February 2022, heavily sanctioned and isolated, Russia had to find an alternative to dollar-denominated transactions. The new currency needed two characteristics: It had to be relatively stable and minted by a non-sanctioning country. Of the few eligible options, such as the Indian rupee and South African rand, China’s yuan was the only one actively seeking an international role and able to take it on.
Bloomberg L.P.
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Just days before Russia’s brutal invasion of Ukraine began in 2022, we warned that Russia and China’s collaboration on dedollarization—the process of reducing an economy’s reliance on the US dollar for international trade and finance—would not sanction-proof Russia’s economy. And it did not. As a result of unprecedented Western sanctions, Moscow overnight became unable to transact in dollars and euros—the world’s dominant currencies.
Russia has since pursued alternatives to manage its trade and reserves. Chinese yuan and gold became the stars of the show, but both introduced new vulnerabilities and inconveniences. Yuan makes Russia dependent on Beijing’s goodwill, while gold is not as sanctions-proof as Moscow expected, and Russia has had a hard time scaling up its illicit gold trade.
Yuanization creates new vulnerabilities
In February 2022, heavily sanctioned and isolated, Russia had to find an alternative to dollar-denominated transactions. The new currency needed two characteristics: It had to be relatively stable and minted by a non-sanctioning country. Of the few eligible options, such as the Indian rupee and South African rand, China’s yuan was the only one actively seeking an international role and able to take it on.
Bloomberg L.P.