Page 58 - RusRPTJul19

7.1 FX issues
De-dollarization flops in Russia-China trade. In 2018, the share of national currencies in Russia-China trade declined for the first time since Moscow embarked on its de-dollarization campaign in 2014. The share of yuan dropped from 12.5% in 2017 to 11.6%, while the ruble share fell from 5.8% to 5.3%. This means national currencies accounted for less than one-fifth of bilateral trade, as the share of dollars and euros increased to 83%.
There are two primary explanations for this decline. First, despite the authorities’ best efforts, it is ultimately businesses, not governments, that decide, which currencies to use in their external trade. And these companies would much rather receive the far-less-volatile dollar and euro for their goods.
58 RUSSIA Country Report July 2019 www.intellinews.com