Ruble Surpasses Fifty Percent in Asian Trade
(MENAFN) Russia’s drive to reduce reliance on the US dollar in global commerce has gathered pace, with the Russian ruble accounting for 50.7% of the country’s trade with Asian nations in May.
This marks the first time the ruble has surpassed the 50% threshold in this context, as the preference for the euro and the US dollar diminished.
According to figures released by the Russian Central Bank, the proportion of ruble-based transactions in Asia climbed by 2 percentage points compared to April.
However, the ruble's role in exports to Europe dropped by 2.3 percentage points, settling at 59.8%, while its involvement in trade with African countries declined by a significant 14.3 percentage points to 84.6%.
In contrast, the ruble's share in transactions with North and South American markets rose by 2.3 percentage points to reach 51.9%.
Additionally, trade with Oceania saw a 3.1 percentage point increase in ruble usage, pushing the figure up to 94.2%, as indicated by the same report.
Specialists observe that Russia has managed to gain a strategic benefit by eliminating extra charges, such as conversion fees and intermediary commissions, that previously stemmed from the ruble’s limited use in external trade.
However, the ruble’s poor convertibility and substantial volatility continue to pose complications for importers.
To mitigate such risks, many buyers prefer linking prices to more dependable currencies like the Chinese yuan.
The movement toward de-dollarization has intensified, particularly following the onset of the Russia-Ukraine conflict in February 2022.
In response to international sanctions, Russia has aimed to lessen the dominance of the US dollar in its trade dealings.
Representatives from the BRICS alliance (Brazil, Russia, India, China, and South Africa) have stated that a unified currency is currently not under consideration.
Instead, the group is concentrating on enhancing the presence of each member’s domestic currency in bilateral trade and reducing reliance on the US dollar.
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