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year, which is almost 2.5 times lower than last year when $217 bln flew from the country, VEB.RF Chief Economist Andrey Klepach told a forum. "Capital outflow is there. Our projection is that around $90 bln will flow from the country this year, which is lower than last year when $217 [bln] left [Russia]," he said. Funds received from exports are partially placed overseas, Klepach added.
The de-dollarization process is becoming irreversible across BRICS nations, Russian President Vladimir Putin said in a video address to participants of the BRICS Business forum. "A balanced, irreversible process of de-dollarization of our economic ties is gaining steam, with efforts undertaken to develop efficient mechanisms of mutual settlements, as well as monetary and financing control. As a result, the share of the dollar in export and import transactions within BRICS is declining as it only equaled 28.7% last year," he said.
Russian President Vladimir Putin has highlighted the increasing trend of conducting payments with friendly nations using the ruble and national currencies.
Putin pointed out that the share of the ruble in payments for Russian exports has surged over three-fold in just 1.5 years, rising from 12% to 42%. Furthermore, when factoring in payments conducted in the currencies of friendly countries, this share balloons to an even more impressive 70%.
Putin also highlighted the positive trends in Russia's trade turnover with countries that are part of the Asia-Pacific Economic Cooperation (APEC) economies and the Eurasian Economic Union (EAEU). In the first half of 2023, trade with APEC economies increased by 10.2%, while trade with EAEU member states saw a robust growth of 14.3%. These figures demonstrate Russia's commitment to enhancing its trade relations with its regional partners.
The yuan began to outperform the dollar in the trading mode of the Moscow Exchange in August with the execution of orders "tomorrow" from last autumn, and since this March, this pattern has been observed constantly. In July, the total volume of yuan trading in this mode exceeded RUB2.4 trillion, while in the dollar it was at the level of RUB1.7 trillion.
The statistics of currency trading is another confirmation that the Russians are looking for protection against the fall of the ruble when making calculations and find it not in “toxic” dollars and euros, but in the yuan. According to the Central Bank, the Chinese currency is also fixed as a means of accumulation: in the first half of the year, the share of the yuan in foreign currency deposits increased from 11% to 14%. In the future, experts see only an increase in the role of the yuan in the Russian foreign exchange market and in the economy.
Since the imposition of the CBR sanctions last year, Russia’s economy has rapidly gone through a process of yuanization as Russian people, business
RUSSIA Country Report September 2023 www.intellinews.com