According to the latest data released on Thursday, only China’s Hong Kong region and the United Kingdom currently rank ahead of Russia in offshore yuan payment and settlement business. And before February, Russia wasn’t even included in SWIFT’s monthly list (only the top 15).
Russian companies and banks participated in nearly 4 percent of international yuan payments in July, up from 1.42 percent in the previous month and close to zero in February, according to SWIFT data.
Russia’s sudden rise in the ranking of the above-mentioned list reflects, in part, that Russia is accelerating its de-dollarization, and Western sanctions against Russia are also squeezing the latter out of the dollar-based global banking system. In addition to the impact on the financial sector, hundreds of large Western companies have withdrawn or slashed their operations in Russia.
At the same time, Russia is also actively developing its own financial information system similar to SWIFT, and has opened special accounts in some banks to continue trade with countries such as China, India and Turkey around major exports such as oil.
According to news released by the Moscow Exchange on Thursday, the trading volume of RMB for delivery on the Moscow Exchange the next day surpassed the US dollar for the first time. Vyacheslav Volodin, chairman of the Russian State Duma, said: “How quickly the dollar will lose its market position is open to speculation, but it is clear that the process of global de-dollarization has begun and cannot be stopped. “
RMB still ranks fifth in global payment rankings in July
According to SWIFT’s statistics, in July’s ranking of global payment currencies based on amount statistics, the renminbi remained the world’s fifth most active currency, accounting for 2.2%, up from 1.86% a year ago.
The four currencies that rank ahead of the RMB are the US dollar, the euro, the British pound and the Japanese yen, accounting for 41.19%, 35.49%, 6.45% and 2.82% of global payments, respectively.
SWIFT data also shows that the ruble is no longer one of the top 20 most actively used global currencies in the international payments market. In December, the ruble ranked 16th with a 0.3 percent share of payments, but has not been on the list since.